A type of economic loss/ financial loss that only reflects financial damage sustained as a result of the negligence of another party. In other words, this damage is neither personal (to the affected party) nor physical to its property/ assets. By nature, the effect of this damage is only financial and can be seen on a balance sheet (expressed in monetary terms). Pure economic losses are generally not recoverable in case of negligence.

For example, if an equipment turned out to have design errors, leading to a breakdown which causes damage to other equipment in vicinity, then the financial consequences of the damage to the equipment may be recoverable. However, if the errors are identified and fixed by the owner, the resulting cost cannot be recovered from other party who installed the piece of equipment. Likewise, any losses associated with stoppage of a production line because of the malfunctioning equipment, during fixing works, are not recoverable. These two cases involve “pure economic loss”.