Definition - What does Proximate Cause mean?
Proximate cause is the primary cause of a loss. Without a proximate cause, the event that caused the loss would not have occurred.
In the context of the law, those who are responsible for the proximate cause of a loss can be held liable. If the resulting lawsuit proves their responsibility for the proximate cause, then they could be forced to pay damages.
Justipedia explains Proximate Cause
Proximate cause is very relevant in liability cases. People often purchase liability insurance in case they are responsible for being the proximate cause of an injury or a loss. For example, many people buy auto insurance in case they accidentally cause an accident on the road while they are driving. Auto insurance can cover a certain amount of damages if the person is found guilty of causing the accident. In order to receive insurance coverage, typically a premium must be paid on a monthly or yearly basis.
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