Which term defines the event insured against that leads to possible loss?

The term that defines the event insured against, which leads to possible loss, is known as a peril. In the context of crop insurance, a peril refers specifically to the risks and events that can cause damage to crops, such as drought, flood, hail, or disease. These are the specific factors or occurrences that the insurance policy is designed to protect against.

Understanding the concept of peril is crucial for farmers and producers as it helps them assess the risks they face and how insurance can assist in managing potential financial losses. By identifying different perils, insurance providers can create tailored policies that cover specific risks associated with crop production.

In comparison, the other terms do have relevant meanings in the context of risk and insurance but do not specifically describe the insured event. An occurrence may refer broadly to any event that takes place, a hazard implies a condition that increases the likelihood of a peril occurring but doesn’t define the event itself, and an estimate usually pertains to calculating potential losses or damages rather than defining the event leading to those losses.