What leads to ongoing damage resulting from an original occurrence?

The concept of proximate cause is fundamental in insurance and claims handling. It refers to an event that is directly responsible for causing a particular outcome, establishing the necessary link between the cause of damage and its resulting effects. In the context of ongoing damage resulting from an original occurrence, proximate cause illustrates how the initial event continues to have repercussions over time.

For instance, if a water pipe bursts in a home, the immediate damage might be the waterlogged floors. However, if that moisture leads to mold growth weeks later, the ongoing damage can be traced back to the original cause—the burst pipe. Therefore, proximate cause serves to connect the original incident with the ongoing effects, demonstrating how one event spurs further complications or losses.

The other options do not accurately encapsulate the ongoing nature of the damage stemming from an original occurrence. Indirect loss pertains to the secondary losses that occur as a result of a primary event but does not specifically address the causational linkage. Hard fraud involves deliberate deceit for financial gain and does not relate to the concept of ongoing damage. Legal hazard refers to conditions that increase the likelihood of claims due to changes in law or legal interpretations, and it is also unrelated to the chain of causation of damage.