Segregation of exposures

To segregate exposures you either duplicate or separate.

Separation requires the dispersal of a particular activity or asset over more then one location. An example of separation is when a manufacturer stores inventory at more then one location. A loss at one location or the other will still leave some inventory available for sale.

Duplication is your having a spare, backup or duplicate of your critical assets readily available. An example of duplication is having a backup of your valuable papers and records on disk.

There are ways to deal with possible loss where using insurance is not the answer. Consider your options carefully and review with your Risk Manager, agent or broker.