What Is a Loss Run Report for Insurance?
Demystify the Loss Run Report. Learn its importance for policyholders and insurers, and how to access this critical summary of your insurance claims history.
Understanding What a Loss Run Report Is
A loss run report is a document provided by an insurance carrier that summarizes an insured’s historical claims data. This report acts as a detailed record of all reported losses or claims under an insurance policy for a specified period. Its main purpose is to offer a comprehensive overview of a policyholder’s claims experience, which is valuable for various stakeholders within the insurance industry.
Understanding Loss Run Reports
Loss run reports hold significant importance for both insurance companies and policyholders alike. Insurers frequently utilize these reports during the underwriting process to evaluate risk and determine appropriate premium rates for new or renewing policies. By examining past claims, carriers can gain insight into a policyholder’s risk profile, which directly influences the cost and terms of coverage offered.
For policyholders, having access to and understanding their loss run report is equally important. This document allows individuals and businesses to review their complete claims history, ensuring accuracy and identifying any potential discrepancies. It also serves as a crucial tool when preparing to shop for new insurance coverage, as prospective insurers will often request these reports to assess the applicant’s past claims performance. Understanding the contents of this report empowers policyholders to better negotiate terms and secure favorable rates.
Information Contained in a Loss Run Report
A typical loss run report contains specific types of information that provide a detailed account of an insured’s claims history. You will generally find the policy number and its effective dates, which identify the specific insurance contract and its coverage period. Each claim listed will have a unique claim number, along with the precise date of loss.
The report also specifies the type of claim, such as property damage, bodily injury, or workers’ compensation, providing clarity on the nature of the loss. It details the amounts paid out by the insurer for each claim, reflecting the actual costs incurred. The report often includes amounts reserved for open claims, which are funds set aside by the insurer to cover anticipated future payments for ongoing claim processes. Each entry will also indicate the current status of the claim, whether it is open, closed, or subrogated.
Requesting a Loss Run Report
Before requesting a loss run report, gather specific information to streamline the process. This includes identifying all relevant insurance carriers you have held policies with, typically going back for the last three to five years, as this is the common timeframe insurers review. Have your policy numbers, effective dates, and any account identifiers ready. Requests are typically made either through your insurance agent or directly to the insurance carrier.
Common methods for obtaining a loss run report include submitting a written request via email or mail, utilizing an online portal if provided by your insurer, or making a direct phone call to their customer service department. After submitting your request, you can generally expect to receive the report within seven to ten business days. Once you receive the report, it is important to carefully review it for accuracy. If you discover any discrepancies or errors, you should promptly contact your insurance carrier to dispute the information and request a correction.