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expected loss (EL)

The expected loss (EL) is the estimated loss frequency multiplied by estimated loss severity and summed for all exposures.

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expected loss (EL)

The expected loss (EL) is the estimated loss frequency multiplied by estimated loss severity and summed for all exposures.

Additional Information


This measure of loss refers to a best estimate of the total losses of a particular type—for example, workers compensation or general liability—of an organization that is expected during a given period (normally a year).