In the context of pecuniary insurance, what does 'pecuniary' refer to?

Pecuniary insurance specifically addresses financial losses, which can arise from various events or circumstances. The term 'pecuniary' underscores the concept of money and financial matters. Thus, in the context of pecuniary insurance, it is primarily concerned with compensating for economic detriment rather than covering physical assets or liabilities directly.

Coverage under pecuniary insurance may relate to scenarios such as business interruption, loss of profits, or other situations where a financial consequence is incurred rather than a physical loss or liability. This highlights the importance of understanding that pecuniary insurance does not cover material goods or property but instead focuses exclusively on financial impacts, making it crucial for businesses and individuals seeking to protect their economic interests.