MANAGEMENT

Detailed explanation-1: -A peril is a potential event or factor that can cause a loss, such as the possibility of a fire that could engulf a house. A hazard is a factor or activity that may cause or exacerbate a loss, such as a can of gasoline left outside the house door or a failure to regularly have the brakes of a car checked.

Detailed explanation-2: -Last updated: December 2018. A peril is an event, like a fire or break-in, that may damage your home or belongings.

Detailed explanation-3: -Risk is the chance or probability of a loss, and peril is a direct cause of loss. If, as in my case, which I share starting on page 48 of this issue, there is a flood from a broken pipe, then the peril is water. A hazard is anything that causes or increases the likelihood of a loss.

Detailed explanation-4: -Causes of loss are the perils that can bring about or trigger loss or damage.

Detailed explanation-5: -Perils are the events that cause loss or damage to property. Fire, flooding, or vehicle impact are all examples of perils.