What is the term for a situation that increases the chance of a loss?

The term that describes a situation that increases the chance of a loss is "hazard." Hazards are conditions or circumstances that make an event more likely to happen, thereby heightening the risk of loss. For example, a slippery surface can be considered a hazard because it increases the likelihood of someone slipping and falling, leading to potential injury or damage.

In the context of insurance, understanding hazards is crucial for assessing risk and determining the appropriate coverage and premiums.

While the terms "peril," "risk," and "exposure" are related to the insurance industry, they do not specifically refer to a situation that increases the likelihood of a loss. A peril is the actual cause of loss or damage, such as fire or theft. Risk is a broader term that represents the possibility of a loss occurring, which encompasses both the perils and the hazards that contribute to that possibility. Exposure refers to the potential for loss based on the value of the property or subject at risk, but it does not inherently imply an increase in chance like a hazard does.