A visible hazard such as black ice is an example of which?

• A. Exposure
• B. Peril
• C. Physical Hazard
• D. Moral Hazard

Answer: (C)

A visible hazard like black ice is a physical hazard because it’s a physical condition in the environment that increases the likelihood of a loss. Hazards are factors that raise risk; a physical hazard specifically involves something tangible in the surroundings. The peril would be the actual loss event you’re worried about, such as a slip and fall, which may occur more readily because of the ice. Exposure refers to the possibility of loss itself (who or what is at risk), not the conditions that make loss more likely. Moral hazard involves changes in behavior or dishonesty that raise risk, not a physical condition in the environment. So black ice fits best as a physical hazard.