A major term used in insurance is Cause of Loss (also called a Peril). Insurance coverage responds when a loss results from a cause of loss identified in an insurance contract. Examples of causes of loss are fire, windstorm, operation of a motor vehicle, burglary, acts of negligence, accident and sickness and other conditions that can cause a loss. Sometimes the cause of loss is called an Act of God, particularly when it is an unusual and unexpected, perhaps even a catastrophic happening.
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The claims are payable under Insurance policies if they arise out of events which are proximately caused by the insured perils. In other words the proximate cause of the event has to be peril covered by the Policy, so as to constitute a valid claim. Proximate cause has been defined as “the active, efficient cause that sets in motion without the intervention of any force started and working actively from a new and independent source.” Single Cause : If the loss is brought about by a single cause, which is an insured peril, obviously this is the proximate cause and thus there is a liability under the Policy. As for example, a ship caught in heavy weather and sinks along with the cargo. The resultant loss is payable as the proximate cause is a peril of the sea covered under the marine Insurance Policy. Concurrent Causes : If there are concurrent causes, as long as no excepted perils are involved, the loss is recoverable, provided one of the causes is an insured peril However, if excepted perils are involved and the consequent losses can be separated, there is liability for those caused by the insured peril. but if it is not possible to s separate the effects of one from the other, there is no liability at all.C.C.E.F. : Customer Centralized Examination Facility.

A form attached to a commercial policy that lists specific causes of loss to be covered by that policy.

The perils that can bring about or trigger loss or damage. Can be direct (the action immediately precedes the loss) or indirect (part of an uninterrupted chain of events leading to the loss).

The reference is commonly to property insurance contracts and the form in question details those perils to which the coverage will respond. Though any property insurance contract must name the perils it intends to cover, for example, crop hail, earthquake, or perils of transit, the most commonly used general forms are the basic and broad named perils forms and the special form. In contrast to the named perils forms, that list specific perils for coverage, the special form contract covers simply risk of direct physical loss and relies on exclusions to delimit and define the coverage.