Which term refers to something that increases the chance of loss?

The term that refers to something that increases the chance of loss is "hazard." Hazards are conditions or situations that make it more likely for a peril to occur. In the context of insurance and risk management, a hazard can be an intrinsic factor, such as a dangerous condition or behavior, that predisposes an insured item or individual to a potential loss. For example, a frayed electrical cord is a hazard that increases the chance of an electrical fire, which is a peril.

Understanding hazards is crucial for adjusters as they assess risks and evaluate losses. By identifying hazards, they can determine the likelihood of certain events occurring and help to establish appropriate underwriting practices and premiums. Recognizing the relationship between hazards, perils, and risks allows for better risk management and mitigation strategies.