What term refers to the cause of a loss?

The term that refers to the cause of a loss is "peril." In the context of insurance and risk management, peril is defined as a specific event or occurrence that can cause damage or financial loss. Examples of perils include fire, theft, flooding, and accidents. Understanding perils is essential for determining the types of insurance coverage needed to protect against various risks.

Hazard, on the other hand, refers to conditions or situations that increase the likelihood of a peril occurring but is not itself the cause of a loss. For example, living in a flood-prone area is a hazard that increases the risk of flood damage.

Risk encompasses both the potential for loss and the uncertainties around it, while loss refers to the actual damage or financial impact that results from a peril. In summary, peril directly identifies the cause of the loss, making it the most accurate term in this context.