What does Probable Maximum Loss mean? Read on to discover the definition & meaning of the term Probable Maximum Loss - to help you better understand the language used in insurance policies.
Probable Maximum Loss
Probable maximum loss (PML) is a concept commonly used in property insurance. It refers to an estimate of the maximum losses an insurer can incur if the insured property is completely destroyed. Total losses can occur if something disastrous happens to a piece of real property, like a fire razing a building to the ground.
We hope the you have a better understanding of the meaning of Probable Maximum Loss.