Insurance

What is Exposure?

Exposure

[ik-spoh-zher]

noun

1.

Exposure is an individual’s inclination to Risk in their daily life. For example, the more a person drives their car, the higher their Exposure to an accident. Insurance companies use Exposure to measure the risks of taking on certain policies and to help determine Premiums.

Have A Question About This Topic?

Related Content

How Compound Interest Works

How Compound Interest Works

Use this calculator to better see the potential impact of compound interest on an asset.

Insuring Your Second Home

Insuring Your Second Home

There are unique risks of owning a second home and obtaining the proper coverage may protect you from financial risk.

What to Do When You Lose Your Wallet

What to Do When You Lose Your Wallet

Ever lost your wallet? Frustrating. Here’s what you can do to keep yourself safe.