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⚖️ '''Intervening cause''' is a legal and analytical concept in insurance that refers to an event occurring between an original cause and the ultimate loss, which breaks or alters the chain of [[Definition:Causation | causation]] linking the initial peril to the claimed damage. In [[Definition:Claims management | claims handling]] and [[Definition:Coverage litigation | coverage litigation]], identifying an intervening cause is critical because it can shift or eliminate an [[Definition:Insurance carrier | insurer's]] obligation to pay a [[Definition:Claim | claim]]. For example, if a building suffers minor fire damage but then collapses due to a subsequent, unrelated earthquake before repairs can be made, the earthquake may constitute an intervening cause that changes which [[Definition:Insurance policy | policy]] responds — or whether coverage applies at all.

🔗 The analysis typically unfolds during the [[Definition:Claims adjustment | claims adjustment]] process or in litigation when a dispute arises over which peril actually caused the loss. Adjusters and legal teams examine whether the intervening event was foreseeable, whether it was independent of the original cause, and whether it was sufficient on its own to produce the loss. In jurisdictions following [[Definition:Proximate cause | proximate cause]] doctrine — a foundational principle in insurance law across common-law systems such as the United States, the United Kingdom, and Australia — the question is whether the intervening cause supersedes the original peril as the dominant, effective cause of loss. Civil-law jurisdictions in Continental Europe and parts of Asia may frame the inquiry differently, often through concepts of adequate causation or concurrent causation, but the practical effect is similar: the insurer must determine which event in the chain triggers or defeats coverage under the policy's terms and [[Definition:Exclusion | exclusions]].

📌 Getting intervening cause analysis right has direct financial and strategic consequences for insurers. An incorrect determination can lead to wrongful claim denials — exposing the carrier to [[Definition:Bad faith | bad faith]] liability and regulatory sanctions — or to overpayment on claims where another party or policy should bear the loss. In complex scenarios such as [[Definition:Catastrophe loss | catastrophe losses]] involving multiple sequential perils (for instance, a hurricane followed by flooding followed by looting), the intervening cause framework helps allocate losses among different [[Definition:Line of business | lines of business]], [[Definition:Reinsurance | reinsurance]] treaties, and even different insurers on a layered program. Courts and arbitration panels worldwide continue to refine how intervening causes interact with policy language, making this a concept that [[Definition:Underwriting | underwriters]], claims professionals, and [[Definition:Insurance defense | defense counsel]] must understand deeply.

'''Related concepts:'''
{{Div col|colwidth=20em}}
* [[Definition:Proximate cause]]
* [[Definition:Loss causation]]
* [[Definition:Concurrent causation]]
* [[Definition:Exclusion]]
* [[Definition:Claims adjustment]]
* [[Definition:Subrogation]]
{{Div col end}}

Definition:Intervening cause - Revision history

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