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S(L)Size of Loss
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Now assume that consumers have the ability to reduce the size of loss through mitigation.
For if the contact is written instead on the maximum size of loss, L(r), in equilibrium, the fraction of the asset at risk covered, [delta], satisfies [delta]*L(r) = [alpha]*V and the amount spent on mitigation is not affected.
The high cost of defense against lawsuits and the size of loss resulting from an unfavorable verdict are taking nursing home operators past the "sticker shock" of EPLI price to the realization that this insurance is fast becoming a necessary business expense.
Q So what size of loss are Hicks and Gillett contemplating?
What mitigations will you employ to reduce the size of loss once occurred and promote quick recovery?
108), "given the size of loss L, B reflects the marginal benefit of increasing safety.
Then a severity, or size of loss, distribution is estimated.
The customized reports can be designed to include site/location, size of loss, type of coverage, and type of injury.