Which factor can be considered a cause of hazard in insurance?

A lack of preventive measures is a significant cause of hazard in insurance. Hazards refer to conditions that increase the likelihood of a loss occurring. In the context of insurance, these can include physical, moral, or legal hazards. When preventive measures are not in place, such as safety protocols, maintenance checks, or security systems, the risk of incidents that may lead to insurance claims increases. This includes accidents, theft, or other unforeseen losses that could have been mitigated with proper precautions.

For instance, in the case of an automobile insurance policy, if a car is not routinely maintained, it is more likely to break down or cause an accident, leading to a claim. Thus, the absence of preventive measures directly correlates with a higher risk profile, making it a root cause of hazard from an insurance standpoint.