What is defined as the event that sets in motion an unbroken chain of events leading to a loss?

The term that defines the event setting in motion an unbroken chain of events leading to a loss is "proximate cause." Proximate cause is a key concept in insurance and legal contexts, as it helps determine liability and coverage in the event of a loss. Essentially, it refers to the primary cause that sets off a sequence of events culminating in a loss. This concept is crucial in assessing claims—to establish whether the damages are connected to the loss under a specific insurance policy.

By identifying the proximate cause, insurers can evaluate if the loss falls under the terms of the policy. For instance, in a scenario where a fire is started by a lightning strike, the proximate cause would be the lightning strike, which leads to the subsequent damage, thereby establishing a direct link from the initial event to the loss.

In contrast, the term "initial event" generally refers to the very first event in a series, but it does not encapsulate the idea of it being a cause that leads directly to the loss. "Direct cause" can sometimes be used interchangeably with proximate cause, but it may not always consider the broader chain of events, and "chain reaction" more aptly describes a series of events rather than a singular cause. Thus,