What does proximate cause refer to in insurance?

Proximate cause in insurance refers to the primary cause that sets off a chain of events leading to a loss or damage. It is essential in determining liability and coverage under an insurance policy. The concept hinges on the idea that for there to be coverage for a particular loss, the proximate cause must be a covered peril under the policy.

The correct answer emphasizes an uninterrupted chain of events, which aligns with the legal definition of proximate cause. It captures the essence that one event leads to another—a process that is crucial when assessing how an accident or occurrence unfolded and what role insurance will play in responding to that situation.

In this context, understanding proximate cause allows adjusters and insurers to evaluate claims more effectively, ensuring that all relevant factors contributing to a loss are considered when determining coverage. This is critical because all of these events must be linked back to a covered event to establish liability under the insurance policy.