What does Segregation mean? Read on to discover the definition & meaning of the term Segregation - to help you better understand the language used in insurance policies.
A risk control technique involving the separation of loss exposure units so that a loss in one unit is unlikely to occur at the same time as a loss in another unit. This assists the entity in reducing high loss severity exposures. For example, a business might occupy several buildings at numerous locations rather than one large building.
More Insurance Terms And Definitions
The Merriam-Webster Dictionary defines insurance as:
b: Coverage by contract whereby one party undertakes to indemnify or guarantee another against loss by a specified contingency or peril.
c: The sum for which something is insured.
We hope the you have a better understanding of the meaning of Segregation. If you are looking for the meanings of other important insurance terms and their definitions, just click on the letter below to find the words & concepts you are looking for: