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ISO's Probable Maximum Loss Report — available through the SPI Plus® system — gives you accurate estimates of a building's or a business's Probable Maximum Loss (PML) and Maximum Foreseeable Loss (MFL) from a single fire. ISO's property information database contains the high-quality, field-verified data needed to calculate accurate estimates.
PML is an estimate of the largest loss that a building or a business in the building is likely to suffer — considering the existing mitigation features — because of a single fire. The PML is the maximum expected loss, expressed as a percentage of the building's value, when critical protection systems are functioning as expected.
MFL is an estimate of the largest fire loss likely to occur if a key loss-reduction system fails.
The PML and MFL percentages depend on many factors, including:
- construction of building
- combustibility of contents
- susceptibility of contents (likelihood of damage from fire, smoke, and water)
- private and public fire protection
For example, in a fire-resistive building with a fire-division wall between each occupant, chances are the entire building wouldn't burn if a fire broke out. But in a building without adequate protection features, a single occurrence might involve a significant loss, and the probability is high that both the building and its occupants would experience extensive damage in the same occurrence. And occupants such as flower and pet shops can experience severe losses even in small, quickly extinguished fires.
The value of PML and MFL in underwriting
Uniform and accurate estimates of PML and MFL help you:
- understand the extent of the risk involved and manage it better through hazard and loss analyses
- meet company underwriting guidelines
- assess economic loss to the property
- determine the amount of reinsurance and satisfy reinsurance arrangements
- decide whether or not you want to insure a risk
Web delivery through SPI Plus®
You can order PML Reports for commercial properties located throughout the country. You get easy-to-read reports that you can print or download as XML data sets. You can search for a match from approximately 3 million buildings and more than 5.4 million businesses occupying those buildings.
SPI Plus gives you ordering flexibility. When you order a Building Underwriting Report, Rating Survey Detail Report, or Underwriters Advantage Report, we include a PML Report at no extra charge, or you can order it alone or in conjunction with any other report available on the SPI Plus system.
Follow the link for a sample PML Report.
For more information . . .
. . . about ISO's Probable Maximum Loss Report — or to get in touch with a sales representative — contact ISO. You can also call us at 1-800-888-4476. |
