What term describes the cause of loss in an insurance context?

In the context of insurance, the term that specifically describes the cause of loss is "peril." A peril refers to an event or situation that can cause damage or loss, such as fire, theft, flood, or earthquake. Understanding this term is crucial because it helps define the extent of coverage in an insurance policy. Policies typically specify the perils that are covered, outlining exactly what types of losses the insurer will compensate for based on the cause of those losses.

While other terms like risk, hazard, and claim are also important in the insurance field, they have different meanings. Risk refers to the possibility of a loss occurring, hazard denotes a condition that increases the likelihood of a peril happening, and a claim is a request made by the policyholder to the insurer for compensation when a loss occurs. Therefore, "peril" is the most accurate term for identifying the cause of loss in an insurance scenario.