A loss that is a direct consequence of a particular peril is called a:

A loss that is a direct consequence of a specific peril is defined as a direct loss. This type of loss occurs immediately as a result of a peril, such as fire, theft, or vandalism. For example, if a fire burns down a house, the destruction of the house and its contents are considered direct losses because they are the immediate result of the fire, which is the peril in question.

Understanding the significance of direct loss is important in the context of insurance, as policies are designed to cover these types of losses directly linked to covered perils. This distinction is crucial for both policyholders and insurers in assessing risk and determining appropriate coverage.

In contrast, other terms provided in the choices represent different concepts within the scope of insurance and risk management. An indirect loss refers to losses that occur as a consequence of direct loss, such as loss of rental income from a property that has been damaged. A peril is the actual cause of loss, such as fire or flood, while a hazard refers to a condition that increases the likelihood of a peril occurring, like having a faulty wiring system that raises the risk of fire.