Maximum Foreseeable Loss (MFL) – One of the terms used in property insurance to describe an estimation of the worst possible loss that is expected to occur from a single event, considering any unusual or worst case scenarios including the inoperability of protective controls.
Great care needs to be taken when interpreting any assessment report as the terms for the same meaning can vary greatly between insurers and in different countries. Other terminology that can be used to describe this estimation include Possible Maximum Loss (PML), Maximum Possible Loss (MPL), Maximum Probable Loss (MPL), Probable Maximum Loss (PML) and MAS (Maximum Amount Subject). Estimated Maximum Loss (EML) usually adapts the estimation on the basis that minor protective controls do not work, but major controls operate effectively.