Recall Loss Split

Split product-recall loss across supplied coverage limits.

Description

A recall-loss split applies separate limits to recall expense, stock loss and interruption loss.

A recall-loss split applies separate limits to recall expense, stock loss and interruption loss. The categories are treated as independent amounts.^[1]

Split product-recall loss across supplied coverage limits.

When to use Recall Loss Split

Use this tool to split product-recall loss across supplied coverage limits.

Prepare the supplied policy terms, dates, assumptions or recorded indicators requested. Keep monetary amounts on one currency basis and select the applicable thresholds separately.

How to use Recall Loss Split and understand its results

Prepare the supplied policy terms, dates, assumptions or recorded indicators requested. Keep monetary amounts on one currency basis and select the applicable thresholds separately.
Enter recallExpense, contaminatedStockLoss, businessInterruptionLoss, recallLimit, stockLimit, interruptionLimit using the field table and calculation rules, then run the tool.
Read recallRecovery, stockRecovery, interruptionRecovery, totalRecovery, uninsuredLoss. The explanation below defines the units, signs, ordering and any flags or placeholder values.
If the tool reports an input issue, correct the values and run it again. Apply the stated assumptions when interpreting a successfully returned result.

Input field	Meaning	Value type; see rules below	Requirement
recallExpense	Recall expense	number; minimum: 0	Required
contaminatedStockLoss	Contaminated stock loss	number; minimum: 0	Required
businessInterruptionLoss	Business interruption loss	number; minimum: 0	Required
recallLimit	Recall expense limit	number; minimum: 0	Required
stockLimit	Stock loss limit	number; minimum: 0	Required
interruptionLimit	Interruption limit	number; minimum: 0	Required

Enter nonnegative category losses and corresponding limits. Return three recoveries, total recovery and residual loss.

eachRecovery=min(categoryLoss,categoryLimit); uninsured=Σlosses−Σrecoveries

Units, indexing, boundary conditions and exceptional cases are defined in the calculation rules above.

Output field	Meaning	Value type
recallRecovery	Recall recovery	number; minimum: 0
stockRecovery	Stock recovery	number; minimum: 0
interruptionRecovery	Interruption recovery	number; minimum: 0
totalRecovery	Total recovery	number; minimum: 0
uninsuredLoss	Uninsured loss	number; minimum: 0

json

{
  "input": {
    "recallExpense": 100,
    "contaminatedStockLoss": 200,
    "businessInterruptionLoss": 300,
    "recallLimit": 80,
    "stockLimit": 150,
    "interruptionLimit": 250
  },
  "output": {
    "recallRecovery": 80,
    "stockRecovery": 150,
    "interruptionRecovery": 250,
    "totalRecovery": 480,
    "uninsuredLoss": 120
  }
}

Limitations and assumptions

No deductible, common aggregate limit, overlapping loss, causation or coverage exclusions are assessed.

Numeric inputs must be finite. Follow the calculation-specific rules for overflow, underflow and exceptional cases. Missing required fields, extra fields, wrong value types and violations of the calculation rules are input errors.

Alternative or Complementary methods

Use Wedding Loss: Calculate wedding postponement loss after refunds, deductible, and limit. For a complementary task, use Nonappearance Loss: Estimate event nonappearance loss using caller-supplied dependency and mitigation.

References

Recall Loss Split — tool.io

Similar or alternative tools

Wedding Loss
Calculate wedding postponement loss after refunds, deductible, and limit.
Nonappearance Loss
Estimate event nonappearance loss using caller-supplied dependency and mitigation.