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segregation

Segregation is 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.

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segregation

Segregation is 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.

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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.