Misconception · MIS:probable-but-unestimable-means-zero-loss

Mistaken idea “Probable but unestimable means zero loss”

Mistaken reasoning: This mistake treats inability to make a reasonable estimate as evidence that no exposure exists.

Updated Aug 21, 2026 Review due Nov 8, 2026

Why this is mistaken

No accrual can be justified from an unestimable amount, but the exposure, disclosure analysis, and work to improve estimation remain visible.

Where to watch

When this mistake may appear

  • Counsel concludes loss is probable but cannot reasonably estimate an amount.
Check your work

Your work may contain this mistake if:

  • This mistake records zero and omits the matter.