Legal Definitions - peril

Peril

In legal terms, "peril" generally refers to a serious danger or risk that could lead to injury, damage, or loss. It describes a situation where something valuable is exposed to potential negative consequences.

More specifically, within the field of insurance, "peril" identifies the particular event or cause that triggers a loss, for which an insurance policy might provide coverage. These are the specific dangers or occurrences that an insurance policy is designed to protect against.

• Example 1 (General Peril): A mountain climber attempting a difficult ascent faces the peril of a sudden rockslide or an unexpected change in weather conditions.

  Explanation: This illustrates "peril" as the inherent danger or risk of harm and loss that is present in a challenging and unpredictable environment.

• Example 2 (Insurance - Property): A business owner purchases property insurance that covers various perils, including "fire," "vandalism," and "burst pipes." If a pipe freezes and bursts, causing water damage to the inventory, the "burst pipe" is the specific peril that led to the loss.

  Explanation: Here, "burst pipe" is the particular event or cause of loss that the insurance policy is designed to cover, triggering a claim for damages.

• Example 3 (Insurance - Liability): A professional liability insurance policy might protect a doctor against the peril of "malpractice claims." If a patient sues the doctor for negligence, the "malpractice claim" is the peril that the insurance policy helps to mitigate.

  Explanation: In this context, "malpractice claim" represents the specific event or cause of potential financial loss (legal defense costs, settlements) that the liability insurance is intended to address.