Calculation of estimated maximum loss (EML/PML)
In the event of fire, explosion, lightning, electrical or mechanical accidents, or natural disasters, we develop and evaluate risk scenarios to determine the maximum amount of damage, including property damage (PD) and business interruption damage (BI). The development of risk scenarios incorporates site-specific damage mitigation factors to provide a more accurate and realistic assessment. Damage mitigation factors include equipment, building structure, fire compartments, surrounding environment, and special devices (automatic fire extinguishing systems) that physically control or mitigate the extent of damage.
Regarding explosion risk, we use our licensed explosion impact assessment tool to quantitatively evaluate the scope of impact and the scale of damage in the event of an explosion.