An intervening cause affects which aspect of an insurance claim?

An intervening cause plays a crucial role in determining liability and the resolution of insurance claims by breaking the chain of causation. In the context of an insurance claim, causation refers to the direct link between the insured event (e.g., a car accident, fire damage, etc.) and the resulting loss or damage for which a claim is made.

When an intervening cause occurs, it introduces a new event or factor that alters the sequence of events, potentially changing the outcome of the claim. This means that if the intervening cause is significant enough, it can eliminate or diminish the original cause's effect on the outcome, leading to the possibility that the insurance company may not be held responsible for the claim under the terms of the policy.

Understanding this concept is essential for both policyholders and claims adjusters, as it affects how claims are evaluated and what coverage may ultimately apply based on the sequence of events leading to the loss.