What is the term for the causes of loss insured against in an insurance policy?

The term that refers to the causes of loss insured against in an insurance policy is "Peril." In the context of insurance, peril is specifically defined as an event or condition that can cause damage or loss, which is covered by the policy. For instance, perils can include fire, theft, flood, or other types of incidents that may result in a claim being filed.

Understanding peril is crucial when examining coverage because it helps policyholders to identify what risks are covered under their insurance plan. By clearly defining perils, policy documents ensure that both the insurer and the insured have a mutual understanding of what specific incidents will trigger coverage and potentially result in compensation for damages.

The other terms relate to aspects of risk management but do not define the specific causes of loss. "Risk" refers to the possibility of loss or damage, "Hazard" refers to conditions that increase the likelihood of a peril occurring, and "Exposure" involves the potential for loss based on the presence or situation of an insured item or entity. Thus, the correct focus on "peril" accurately captures the essence of what is being insured against in a policy.