[E072]

exposure

1) Synonymous with risk: chance of loss by fire, radiation, accident, etc.

2) The danger of loss (particularly by fire) arising from what happens to another risk close by.

3) The sum total of values which, if damaged or destroyed, would cause loss under a policy, i.e., the value of everything a policy insures.

4) A measure of the rating units or premium basis of a risk, e.g., payroll or number of automobiles.

5) A unit of loss potential (e.g., a life, a house, an automobile, a ship, a package in shipment, an acre of growing crops, a plate glass window, a fur coat) in which case the term "exposure unit" is used.