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I GENERAL MATTERS
The insurer is only liable to indemnify the assured for the loss which he has suffered if, on the true construction of the contract which they have actually concluded, 1 (1) the loss is the consequence of an insured peril, (2) there is a sufficient nexus between that insured peril and the loss which has occurred, and (3) recovery is not subject to an exclusion. The second point, which depends on the application of the principles and rules of causation and proof of loss, 2 and the third 3 will be considered below. The first point will be considered here. It requires a determination of those perils which are covered by the policy in issue and a consideration of the circumstances comprehended by those specified perils.
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