Which of the following defines the term peril?

The term "peril" is defined as a cause of loss in the context of insurance. This means that it refers to specific events or circumstances that can result in damage to property or liability. For example, common perils might include fire, theft, or natural disasters. Understanding perils is crucial in insurance because a policy typically covers defined perils, meaning that it specifies what causes of loss are protected under the terms of the insurance agreement.

Identifying perils is essential for both insurers and policyholders, as it helps in assessing risk and determining coverage. When you're evaluating an insurance policy, you'll want to know what perils are covered to understand what potential losses the policy can address. This knowledge helps in making informed decisions about risk management and selecting the appropriate coverage solutions.