Which scenario would lead to subsequent losses under the principle of proximate cause?

The principle of proximate cause refers to the reason or action that directly leads to a result or effect, particularly in the context of insurance and liability. The correct choice illustrates a scenario in which initial damage results in additional negative consequences. When initial damage occurs, it can trigger a chain of events that leads to further economic impact, such as loss of business income or additional repair costs.

In this case, the initial damage serves as the direct cause that subsequently leads to further losses experienced by the insured party. This aligns with the concept of proximate cause, as it establishes a clear link between the initial loss and the resulting impacts.

In contrast, the other choices do not align with the principle of proximate cause. Damage compensation leading to claims is more about the outcomes of claims rather than the causal chain from initial damage. A claim resulting in an increased premium pertains more to the financial implications of filing a claim rather than the direct effects of the damage itself. Lastly, property reclamation leading to losses suggests losses that may occur in the process of recovering property but does not stem directly from an initial damaging event, thus not illustrating the principle of proximate cause effectively.