What Does Segregation of Exposure Units Mean?

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What does Segregation of Exposure Units mean? Read on to discover the definition & meaning of the term Segregation of Exposure Units - to help you better understand the language used in insurance policies.

Segregation of Exposure Units

Segregation of Exposure Units

The segregation of exposure units is the process of literally separating things that represent risks to the insured into two different areas. For example, a company may store assets in two different banks to reduce the risk of losing all of the assets if one of the banks is robbed. Segregation of exposure is essentially a way to hedge against risk.

We hope the you have a better understanding of the meaning of Segregation of Exposure Units.

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