What is the term used for the events that people buy insurance to protect against?

The term used for the events that individuals purchase insurance to protect against is "perils." Perils refer to specific risks or events that can cause loss or damage, making them the primary focus of an insurance policy. For example, common perils include fire, theft, vandalism, and natural disasters. When a person chooses to buy insurance, they are essentially seeking coverage against these adverse events that could lead to financial loss.

In contrast, liabilities refer to the obligations that an individual or organization has to others, such as debts or responsibilities arising from contracts or legal actions. Claims are the requests made by policyholders to their insurers for compensation or coverage for losses incurred as a result of perils. Hazards denote conditions or situations that increase the likelihood of a peril occurring, such as a poorly maintained property that is more susceptible to fire damage. Understanding these distinctions helps clarify why perils are the term most accurately associated with the types of events for which insurance coverage is sought.