What does Exposure mean? Read on to discover the definition & meaning of the term Exposure - to help you better understand the language used in insurance policies.
Exposure refers to an individual's susceptibility to various risks encountered in daily life. It denotes the individual's potential for accidents and other losses. Insurance companies evaluate the level of risk an individual faces and use it to calculate insurance premiums. For instance, the more frequently a person drives a car, the higher that individual's exposure to accidents and other similar problems will be.
We hope the you have a better understanding of the meaning of Exposure.