The proximate causes of loss

Whether a loss is covered by an insurance policy depends on ascertaining its proximate cause. The legal standard of the proximate cause, although formulated as “the efficient cause” of the loss, has often been subject to the courts’ rigorous scrutiny. This chapter will discuss whether the word “proximate” in this context is misleading and if the concurrent causes formula, applicable where the proximate cause is not determinable as a single cause, is satisfactory to provide a balanced solution between the assured and the insurer.