ABC Bakery, like many businesses, is exposed to various forms of risk that can impact its operations and financial stability. Specifically, the bakery faces two primary risks: property risk and liability risk. Property risk involves potential damages to the physical assets of the business. Liability risk pertains to the possibility of the bakery being held responsible for injuries or damages to third parties.

The probability distributions of losses for these two risks are detailed below. Assume that property and liability risks are independent.

Property Loss

$\backslash$table$[[$Loss $($M $$),$Probability$],[3,0\mathrm{.}7],[47,0\mathrm{.}2],[98,0\mathrm{.}1]]$

Liability Loss

$\backslash$table$[[$Loss $($M $$),$Probability$],[7,0\mathrm{.}6],[34,0\mathrm{.}3],[57,0\mathrm{.}1]]$

ABC is considering two options for transferring its risks.

The first option involves purchasing separate insurance coverages for the two risks, each with a deductible of $$30$ million. This approach is straightforward to implement, as their current insurance provider offers these policies.

The second option is to buy a single insurance policy that covers both risks, with a total deductible of $$50$ million. ABC $\text{'}$s risk manager believes this approach could potentially save on the cost of transferring risk. However, it may also incur additional costs and expenses due to the complexity of designing such a policy. Additionally, ABC might need to seek a new insurance provider capable of underwriting both risks together.

The risk manager has requested you to prepare an estimate of the maximum additional expense ABC should be willing to incur in designing and purchasing a single coverage.

What is the maximum additional expense $($in USD millions$)$ that ABC should be willing to incur in designing and purchasing a single coverage? Assume that their default is to buy two separate policies. Insurance companies charge a loading of $20\%.$

$($Hint: You want to calculate the savings from having a single policy relative to two separate policies$)$