Lewis's disregard for being careful with electronics at his store due to his insurance coverage is an example of a:

Lewis's behavior—his lack of care regarding the safety of electronics in his store because he believes he is covered by insurance—is an excellent illustration of a moral hazard. A moral hazard refers to a situation in which an individual may engage in riskier behavior or neglect certain responsibilities due to the assumption that they will not suffer the consequences of their actions, often because they have insurance that will cover potential losses.

In Lewis's case, his actions signal a change in his attitude toward risk management; he feels protected by his insurance policy, which leads him to take less care of his property. This concept is critical in insurance because it highlights how the existence of coverage may inadvertently lead to increased risk-taking behaviors among insured parties, ultimately affecting the insurer.

The other options pertain to different concepts that are not applicable in this context. Physical hazards involve tangible conditions or situations that increase the likelihood of a loss, while fraud involves intentionally misleading behavior for financial gain. Morale hazards relate more to carelessness about responsibility in general rather than specifically being influenced by the presence of insurance.