What is the proximate cause in insurance terms?

In insurance terms, proximate cause refers specifically to a direct link between an occurrence (such as an event or action) and the resulting loss or damage. This concept is pivotal in determining whether a claim falls under coverage. By establishing that there is a direct cause-and-effect relationship, insurers can assess liability and the validity of claims more accurately.

Proximate cause does not focus on just any cause of the loss but emphasizes the immediate and specific link that led to the adverse event. This ensures that claims are evaluated fairly, based on what directly led to the incident rather than other unrelated factors. Understanding proximate cause is crucial for adjusters when assessing claims, as it allows them to navigate through the complexities of liability and coverage determinations effectively.