Which of the following best describes a physical hazard?

A physical hazard refers to a tangible condition or scenario that elevates the probability of loss or damage occurring. This can include factors such as poor wiring in a building, icy sidewalks creating a slip hazard, or having a faulty heating system. These conditions are closely tied to the physical environment and actively contribute to the likelihood of an accident, injury, or damage, impacting insurance assessments and outcomes.

The other options do not accurately define physical hazards. A behavior that increases risk emphasizes actions taken by individuals rather than physical conditions surrounding them. Increased risk due to a legal system is more relevant to legal hazards, focusing on the ramifications of laws rather than the physical state. Lastly, an intentional act to defraud an insurer describes moral hazards, which relate to dishonest behavior rather than physical conditions associated with increased risk.