What is the most straightforward definition of peril?

The most straightforward definition of peril is "the cause of loss insured against." In the context of insurance, a peril specifically refers to an event or circumstance that can lead to damage or loss for which an insurance policy provides coverage. For example, common perils include fire, theft, or natural disasters such as floods and earthquakes. When a policyholder experiences a loss, the insurer evaluates whether that loss was due to a peril specifically covered in the policy.

Understanding this definition is crucial for anyone studying property and casualty insurance as it helps clarify the relationship between the insured risks and the coverage provided in insurance contracts. By identifying what perils are covered, policyholders can better understand the protections offered by their insurance policies.