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The camera automatically takes three or more shots with a different exposure for each frame
One image at the camera measured exposure , a second at a negative exposure compensation (usually -1/3 EV , though some cameras allow you to specify the amount), and a third at a positive exposure compensation (usually +1/3 EV , though some cameras allow you to specify the amount)
a little bit of clipping is OK on things like the highlights of sun dancing on water (specular highlights)
overexposed digital images are almost useless. Anything that washes out to white is gone forever
images that are too dark are easy to correct later; just drag the right slider in Photoshop's Levels command to the left to meet the edge of the histogram
In this histogram you'll see a peak on the left at 100% black, even when overexposed. This is the dark shadow on the left of the photo. This shows that the camera's contrast needs to be lowered, or better still, add fill light in the shadows.
Overexposed histogram means loss of detail in the highlights