What is the term used for the main cause of a loss under an insurance policy?

The term used for the main cause of a loss under an insurance policy is "proximity cause." This concept is fundamental in insurance law as it refers to the primary event or factor that sets in motion the series of events leading to the loss. In determining whether an insurer is liable for a claim, the proximate cause helps clarify the relationship between the cause and the loss incurred.

For instance, if a fire destroys a building, the proximate cause would be the fire itself, while the subsequent damages that arise from that fire would be evaluated in the context of this main cause. Understanding proximate cause is essential for both insurers and policyholders because it can significantly impact the outcome of claims and the interpretation of policy coverage.

Other terms, such as "ultimate cause," "key cause," or "direct cause," may imply causation but do not specifically capture the legal nuances that define proximate cause within the realm of insurance claims. Thus, relying on the recognized definition of proximate cause provides clarity in assessing liability and coverage in insurance contexts.