Probable Maximum Loss (PML).

Probable Maximum Loss (PML) is the estimated maximum loss that could reasonably occur from the most severe combination of peril, exposure, and vulnerabilities. PML estimates are used to help determine the amount of insurance coverage a business should purchase, as well as the retention limit for a self-insured retention program.

What is seismic PML? Seismic PML is an insurance policy that covers damages caused by earthquakes. This type of policy is typically taken out by businesses or homeowners in areas where earthquakes are common. The policy will pay for repairs to the property as well as any lost income that results from the earthquake.

How is PML calculated in insurance?

PML is the maximum amount that an insurance company will pay out for a covered claim. The calculation of PML varies by insurer, but generally takes into account the limit of the policy, the deductible, the type of claim, and the age and type of vehicle. What is EML and PML? EML and PML are both types of insurance that can be purchased by businesses. EML insurance provides coverage for employees who are injured or become ill while working. PML insurance provides coverage for businesses in the event that they are sued for wrongful termination, discrimination, or other employment-related issues.