In the context of insurance, what is proximate cause?

Proximate cause refers to the primary event or action that sets in motion a chain of events leading to a loss. It is the original occurrence that is directly responsible for the damage or loss experienced by the insured. Understanding proximate cause is essential in insurance claims, as it helps determine whether a claim is valid based on whether the loss can be directly traced back to a covered event as outlined in the insurance policy.

By focusing on the original occurrence, proximate cause distinguishes the root cause of the loss from other events that may have contributed to it. This concept is crucial during the claims process, as insurers evaluate whether the incident was indeed the primary reason for economic loss and whether the policy provides coverage for such a cause.