What Is a Loss Run Report in Insurance?

A loss run report is a historical record of claims made against an insurance policy. It details an insured’s claims activity over a specified period. This document offers insights into past incidents and their financial impact, helping policyholders and insurers assess risk and manage coverage effectively.

Understanding a Loss Run

A loss run report is a summary document from an insurance carrier detailing an insured’s claims history. It outlines reported incidents over a particular timeframe, often covering the past three to five years, though longer periods may be available. This record is commonly requested for commercial insurance policies like general liability, workers’ compensation, or commercial property insurance. While primarily used for business policies, it can apply to personal lines in certain situations. The report serves as a factual record of reported incidents, regardless of whether a payout was made.

This report acts as an insurance equivalent to a credit report, providing a comprehensive view of how an insured has utilized their coverage. It illustrates the frequency and severity of past claims. If a business has never filed a claim, the loss run report will state “no losses reported.”

Information Found in a Loss Run

A loss run report includes data points that provide an overview of claims activity. It lists the insured’s name or business name, relevant policy number(s), and coverage dates. For each claim, the report details the claim number, the date the loss occurred, and the date it was reported to the insurer.

The report provides a brief description of the incident or reason for the claim, categorized by policy type. It indicates the current status of each claim: open, closed, or subrogated. Financial data shows total amounts paid by the insurer to settle closed claims, including settlement, legal, or defense expenses. For open claims, the report shows the amount the insurer has set aside in reserves, representing estimated future costs.

The Importance of Loss Runs

Loss runs are valuable for both insurance companies and policyholders. Insurers rely on these reports during underwriting to evaluate risk and determine coverage eligibility. By analyzing past claims’ frequency and severity, underwriters assess a business’s potential risk, similar to how banks use credit scores for loans. This assessment directly influences premium calculations for new or renewal policies.

A history of minimal or no claims can indicate a lower risk profile, potentially leading to more favorable rates and terms. Conversely, frequent or severe claims may signal higher risk, resulting in increased premiums or coverage denial. Policyholders also use loss runs to review their claims history, ensure accuracy, and identify trends for risk management improvement. The report helps businesses analyze hazards and implement measures to reduce future losses.

Obtaining Your Loss Run

To acquire a loss run report, an insured initiates the request with their current or previous insurance carrier. This process can be managed through their insurance agent or broker. Policyholders may contact the insurer’s customer service or claims department directly via phone or email to submit their request.

When requesting the report, provide specific information such as the business name, policy number, and desired time frame for the claims history. While some carriers offer online portals for direct access, others may require a formal written request. Most states require insurance companies to provide the report within a specified timeframe, commonly around 10 days, though this can vary. Insurers require that loss runs be “currently valued,” meaning the data must be recent, within 30 to 90 days of the application date.