peril

Peril refers to the risk or danger that can lead to loss, damage, or harm. In insurance, it specifically describes the specific events or circumstances, such as fire, theft, or natural disasters, that can cause a covered loss. Understanding peril helps determine what situations or events are protected under a policy. Essentially, peril is the threat that insurance coverage aims to guard against, ensuring that when such an event occurs, the insured can seek compensation to recover from the loss or damage.