In insurance, what is the term for a condition that increases the chance of a loss occurring?

The term that refers to a condition increasing the chance of a loss occurring is "hazard." In the context of insurance, a hazard is a specific situation or condition that makes a certain risk more likely to result in a loss. Hazards can take various forms, such as physical hazards (like a slippery floor that increases the likelihood of a slip-and-fall accident), moral hazards (where someone might take greater risks knowing they have insurance), or legal hazards (which may arise from statutes or regulations that can affect risk).

Understanding hazards is critical for insurers as they assess risks and determine policy terms and premiums. This term directly correlates to the potential for loss, highlighting its significance in risk management and insurance practices.