What Is a Loss Run Report and Why Do You Need One?

A loss run report is a document that provides a historical record of claims filed against an insurance policy. It offers a comprehensive overview of past incidents and their financial impact. This report helps businesses and individuals understand their insurance claims history over a specific period.

What is a Loss Run?

A loss run report is a detailed account generated by an insurance carrier, outlining an insured’s claims history. It is also commonly referred to as a “loss history report” or “claim history report.” The report provides a snapshot of all reported incidents for a policyholder or policy, regardless of whether they resulted in a payout. These reports typically cover a period of three to five years.

The report functions similarly to a credit report in the financial world, offering a record of how an entity has managed its risks and utilized its insurance coverage. It summarizes past claims activity, including both open and closed claims.

Why a Loss Run is Important

A loss run report holds practical importance for policyholders, particularly when interacting with insurance providers. Underwriters rely on this document to assess the level of risk associated with insuring a business or individual. This assessment directly influences the terms and premiums offered for new policies or renewals. A favorable claims history can lead to more competitive insurance quotes.

The report also serves as an internal tool for policyholders. By reviewing their claims history, businesses can identify recurring patterns in incidents. This analysis can inform the development and implementation of risk management strategies or improvements to safety protocols, potentially reducing future claims. Understanding the frequency and severity of past losses helps in making informed decisions about ongoing operations and insurance needs.

Information Included in a Loss Run

A loss run report contains specific data that provides a thorough overview of an insured’s claims history. Each report includes policy details, such as the insured’s name or business name, the policy number, and the coverage dates. The name of the insurance carrier is also featured.

For each claim, the report details the date of the loss or incident and the date it was reported to the insurer. A brief description of the claim provides context for the incident. The status of the claim, whether open or closed, is also indicated.

Financial information includes the total amounts paid out by the insurer for the claim, covering settlement costs, legal expenses, and property damage or medical payments. For open claims, the report shows funds set aside as reserves, which are estimated future payments. A valuation date indicates when the data in the report was generated, which is important for ensuring the information is current.

How to Obtain a Loss Run

Obtaining a loss run report involves a straightforward process initiated by the policyholder. The first step is to contact the current or a previous insurance carrier, or an insurance broker who managed the policy. Many insurers and brokers offer multiple channels for requests, including phone, email, or online portals.

A formal request, often in writing, is usually required to ensure a clear record of the communication. When making the request, policyholders should provide essential information such as their policy number, the policyholder’s name or business name, and the specific timeframe for which the report is needed, commonly three to five years. While processing times can vary, many states have regulations requiring insurance companies to provide the report within a specified period, often 10 days or less. It is advisable to request the report well in advance of insurance renewal dates to allow ample time for underwriting. If there are any delays in receiving the report, contacting the state’s insurance commissioner can be a next step.