What is something that increases the probability of loss called?

A hazard is defined as a condition or situation that increases the likelihood of a loss occurring. In the context of insurance and risk management, hazards can take various forms, such as physical hazards (like icy roads), moral hazards (where an individual's behavior may increase the risk), or legal hazards (related to the regulatory environment). By identifying and understanding hazards, insurers can better assess risks and determine appropriate coverage and premiums.

Risk, on the other hand, refers to the overall uncertainty or chance of loss, while peril specifically denotes the cause of the loss, such as fire or theft. A loss represents the actual financial impact experienced when a peril occurs. Therefore, while each term has its own importance in the realm of insurance and risk management, a hazard is the specific factor that elevates the risk of a loss.