In the case of a stolen office computer, what is the peril and what is the hazard?

In the context of the given scenario, the correct identification of the peril and the hazard is essential for understanding risk in insurance.

The peril refers to the actual event or circumstance that causes loss or damage. In the case of the stolen office computer, the theft represents the peril because it is the specific risk or event leading to the loss of the computer.

On the other hand, a hazard is a condition or situation that increases the likelihood of a peril occurring. In this instance, the open window acts as a hazard because it creates an opportunity for the theft to happen, thus increasing the risk of the office computer being stolen.

This distinction between the peril (the theft) and the hazard (the open window) is crucial in risk assessment and insurance practices, as it helps insurers determine the factors contributing to potential losses and how to mitigate them effectively.