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3. In a maximum probable loss event arising from a tornado, identify the additional
losses that you would expect.
Additional losses that would be expected from a maximum probable loss
arising from a tornado: notice that in this case given the concentration of people in a
skyscraper, there is a massive potential for loss of life especially when there has been
no pre-loss evacuation training of the building in the case of a variety of perils
including fire (and smoke). Training should be emphasized to reduce the potential loss
of life. In addition, people should be trained to head to pre-designated spots away
from the glass window. So, in the worst case scenario, death of all office workers with
the consequential loss in income, talent, hiring and training costs would cause a
significant financial and other hardship on the company. Moreover, workers
compensation costs, employee benefit distribution for life, medical, survivor income
and disability would be incurred.