What does 'proximate cause' refer to?

'Proximate cause' refers to the primary or direct cause that leads to a loss or damage in a legal context, especially in insurance. It represents the incident or factor that is most closely connected to the outcome in question—such as an accident or event that directly results in financial loss. Understanding proximate cause is crucial for determining liability and coverage in claims.

In more complex situations, while there may be multiple factors involved in a loss, proximate cause identifies the most significant one that essentially brought about the loss. This legal understanding helps insurers and courts establish whether a claim is valid based on the driving force behind the loss, ensuring a clear connection between the cause and the resulting damage.

Thus, this definition clearly aligns with the concept of proximate cause as the main cause leading to a loss, distinguishing it from less significant factors or legal terminology that do not directly address the main cause of the loss.