What is the term used to define the specific event that causes a loss in insurance?

The term that defines the specific event that causes a loss in insurance is "peril." In the context of insurance, perils can include natural events such as fire, flood, earthquake, or man-made occurrences like theft or vandalism. When an insurance policy covers certain perils, it means that losses resulting from those specified events will be compensated by the insurer, provided that the terms of the policy are met.

Causation generally refers to the relationship between an event (the cause) and the outcome (the effect), but it does not specifically define the event itself. Risk factors pertain to variables that increase the likelihood of a loss occurring but do not define a specific event. Exposure relates to the potential for loss an insured entity faces but, again, does not pinpoint an event that directly causes that loss. Therefore, "peril" is the most accurate term to describe the specific event leading to a loss in the context of insurance.