Proximate Cause — Insurance Claims Definition
The dominant or legally recognized cause that sets a chain of events in motion and is sufficiently related to the resulting loss.
Proximate cause analysis determines whether a claimed peril is the legal cause of loss for coverage purposes. It is not always the first or last event in time — it is the cause that is direct, natural, and unbroken in bringing about the harm.
It interacts with concurrent causation and policy exclusions; some states use efficient proximate cause tests when multiple perils combine.
Examples
Lightning strikes a tree that falls on a house — lightning may be the proximate cause of the roof damage even though the immediate impact was the tree.
Common Mistakes
Confusing proximate cause with but-for causation in complex losses; remote or intervening criminal acts may break the chain depending on facts and law.
