The terms peril and hazard should not be confused with the concept of risk discussed earlier.
See Also
What is the difference between a hazard and a risk? | FAQ | iHASCOMoral and Physical Hazards in Insurance – What are they?Peril is defined as the cause of loss. If your house burns because of a fire, the peril, or cause of loss, is the fire. If your car is damaged in a collision with another car, collision is the peril, or cause of loss. Common perils that cause loss to property include fire, lightning, windstorm, hail, tornado, earthquake, flood, burglary, and theft.
A hazard is a condition that creates or increases the frequency or severity of loss. There are four major types of hazards:
Physical hazard
Moral hazard
Attitudinal hazard (morale hazard)
Legal hazard
A physical hazard is a physical condition that increases the ...
