What is Exposure?

Exposure is Exposure is the amount of loss you might experience. For example, if your car was in an accident, in the worst case your exposure might include the cost of your car, the cost of several other cars and the cost of any injury to yourself or other people. An actuary will work out the risk of these things happening and put a financial estimate on the cost of these. A policy will usually put limits on different types of exposure.


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