Loss Exposure definition:
Any condition or situation that presents a possibility of loss, whether or not an actual loss occurs.
This is the risk that your individual or business has the possibility of loss to assets. to a specific cause of loss, and there is a financial loss associated with that loss.
When an individual or family owns an asset such as a home or car, the change that a tree will fall on the house and damage it, is an example of a loss exposure.