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: -A peril is the direct cause of a loss, or the source of the loss. For example, if your house is damaged by a lightning strike, the lightning strike is considered to be the peril. If your house catches on fire, then fire will likely be considered the peril.

Detailed explanation-3: -The critical distinction here is that peril is a factor (wrongful act) or event (fire) that can contribute to a loss or cause a loss. It is not the loss itself. This distinction is of particularly importance in the case of cyber insurance. Read more about it in this article on ransomware.

Detailed explanation-4: -Last updated: December 2018. A peril is an event, like a fire or break-in, that may damage your home or belongings.

Detailed explanation-5: -A peril is a cause of loss. “ Peril” and “cause of loss” mean exactly the same thing. However, “hazard” and “peril” are not the same. A hazard can increase the likelihood of loss resulting from a perils.