GLOSSARY
This Insurance Glossary of Terms is produced and maintained by the National Alliance Research Academy. 
If you have a comment, suggestion or question please contact us at glossary@scic.com

Probable Maximum Loss (PML)

An estimate developed for property insurance underwriters that represents the worst amount of loss that is likely to happen, as opposed to the worst possible result that could happen. A PML estimate includes adverse conditions, such as the impairment or failure of a sprinkler system, a delayed fire alarm, insufficient water supply or delayed firefighting response, if such conditions seem reasonable.

Do you need an answer immediately?

Check out our FAQ page!

Welcome To the Alliance!

The National Alliance for Insurance Education & Research is now the Risk & Insurance Education Alliance, or simply “The Alliance”.  For more details, please read our Press Release.