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Giant loss: The dimensions of the loss must be significant from the angle of the insured. Insurance coverage premiums must cowl each the expected value of losses, plus the cost of issuing and administering the policy, adjusting losses, and supplying the capital needed to moderately guarantee that the insurer will be able to pay claims. For small losses, these latter costs may be a number of instances the dimensions of the anticipated value of losses. There is hardly any level in paying such costs unless the protection provided has actual worth to a buyer.