MLchartDataset catalogue

Maximum possible loss (MPL)

Term · Insurance and risk management · MLC-T-INS-002148

An estimate of the worst-case scenario loss that could occur from a single event, assuming the failure of all protective measures and the most adverse circumstances. This assessment considers the total destruction of an insured property or the most extensive liability claim imaginable. It is used by insurers to determine the absolute maximum exposure to a single risk.

Table 1. Record
IdentifierMLC-T-INS-002148
FieldInsurance and risk management
AbbreviationMPL
Record as JSON 
{
  "id": "MLC-T-INS-002148",
  "term": "Maximum possible loss (MPL)",
  "field": "Insurance and risk management",
  "definition": "An estimate of the worst-case scenario loss that could occur from a single event, assuming the failure of all protective measures and the most adverse circumstances. This assessment considers the total destruction of an insured property or the most extensive liability claim imaginable. It is used by insurers to determine the absolute maximum exposure to a single risk.",
  "abbreviation": "MPL",
  "url": "https://mlchart.com/terminology/insurance/maximum-possible-loss-mpl/"
}

Record 2,104 of 3,708 in Insurance and risk management terminology (MLC-0106). Request the full dataset.