Definition Of Hazard Loss

A hazard refers to a situation or condition that increases the likelihood of an insured loss occuring.

Definition of hazard loss. For example one dictionary defines hazard as a danger or risk which helps explain why many people use the terms interchangeably. Another definition of risk is the probable frequency and probable magnitude of future losses. To risk doing something especially. Something that is dangerous and likely to cause damage.

Illness for example is a peril creating a loss of income and medical expenses but it is also a hazard increasing the chance of loss by death. For insurance purposes two types of hazard may be distinguished. It is best understood in the context of two related terms. A physical hazard is an objective characteristic increasing the chance of loss from a given peril.

There are many definitions for hazard but the most common definition when talking about workplace health and safety is. This definition also focuses on the probability of future loss whereby degree of vulnerability to hazard represents the level of risk on a particular population or environment.