Insurance Terms Defined: Liability Loss Exposure

Liability Loss Exposure: any condition or situation that presents the possibility of a claim alleging legal responsibility of a person or business for injury or damage suffered by another party.

A liability loss exposure is what your auto insurance or homeowners insurance company will use to quantify your risk as an insured customer.  The more liability loss exposures that you have the more you will have to pay in premiums to keep your insurance policy in force.

If you have a history of auto accidents or people being injured on your property then you will likely have more liability loss exposures attached to your name.  This is not a type of loss exposure that you want to have a lot of as liability insurance is the most costly and has the biggest effect on your premium.