Word forms: (regular plural) probable maximum losses
( Insurance : Reinsurance )
With $1 million at risk but a probable maximum loss of $100,000, for example, the property owner would probably buy $100,000 insurance
and bank on avoiding the larger disaster.
The probable maximum loss is the largest loss thought probable under an insurance policy; normally applied
to material damage risks where the total sum insured is not considered to be at risk
from one loss event.
Probable maximum loss is the maximum amount of loss that can be expected under normal circumstances.
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