Which term describes a condition that creates or increases the probability of a loss?

The term that describes a condition creating or increasing the probability of a loss is "hazard." In the context of insurance, hazards are factors that can contribute to the likelihood of a peril occurring, thus elevating the risk associated with an insured item or activity. For example, in agriculture, wet soil conditions may be considered a hazard because they increase the risk of crop failure due to flooding or disease.

Peril refers to the actual risk or cause of loss, such as fire or drought, while an occurrence typically refers to the event that triggers a claim. Negligence relates to a failure to exercise appropriate care, potentially leading to a loss, but it is not classified as a condition increasing the probability of loss in the same manner as hazards do. Understanding these definitions is crucial for properly assessing risks and determining insurance coverage in agricultural practices.