A condition that increases the chance or severity of a loss, such as a worn extension cord, is a:

Giải thích

A physical hazard is a tangible condition that increases the likelihood or severity of a loss, such as faulty wiring or a worn cord. A peril is the actual cause of loss, such as the fire itself. A moral hazard involves dishonesty (setting a fire to collect), and a morale hazard is carelessness because insurance exists. Distinguishing hazards from perils is a foundational concept.