What term describes the actual cause or source of an incident of destruction, injury, or loss?

The term that accurately defines the actual cause or source of an incident of destruction, injury, or loss is "peril." Peril refers to specific risks or hazards that can result in a loss and includes events such as fire, theft, or natural disasters. Understanding the concept of peril is important as it helps in identifying what specific events could potentially cause damage or loss, thereby informing the insurance coverage needed.

In contrast, "risk" is a broader term that refers to the chance or probability that a loss may occur, while "liability" pertains to the legal responsibility one may have towards another party for damages they may have caused. "Exposure" relates to the potential for loss and is often used in assessing risk, but it doesn't pinpoint the actual source of an incident. Therefore, knowing that peril accurately captures the essence of the cause of loss clarifies its significance in insurance terminology.