What Does Segregation Mean?

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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.

Segregation

Segregation

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.

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

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