Insurance Loss Runs: Your Small Business Guide

Insurance loss runs are carrier reports of a business's claim history for specific policies. A loss run report may include claim dates, descriptions, payments, and reserves for open claims. Ask the current or prior insurer for currently valued loss runs, with the years and coverage lines requested by the receiving underwriter. Check the report's valuation date before sending it. Claims history is one part of a quote submission; a report does not promise eligibility, a price, or coverage.

What Are Insurance Loss Runs?

An insurance loss run report records claims under the policy or policies it identifies. Its scope depends on the carrier, coverage line, and requested period. Match those details with the underwriter's request rather than assuming one report contains your full history across every insurer.

Key details found in a loss run report often include:

• Policyholder name and policy number
• Policy effective and expiration dates
• Type of coverage (e.g., commercial auto, workers' compensation)
• Claim number and date of loss
• Brief description of the incident
• Claim status (open, closed, or reopened)
• Amounts paid by the insurer
• Estimated outstanding reserves for open claims

"Currently valued" refers to the claim information as of a stated valuation date. It does not mean the report stays current after that date. Ask the receiving underwriter how recent the report needs to be. A reserve is an estimate for an unresolved claim, not a final payment; some reports do not disclose reserves.

Why Underwriters Need Loss Runs

Underwriters review loss runs to evaluate a business's risk profile. Your claims history helps them understand:

• Frequency: How often claims occur.
• Severity: The cost of those claims.
• Trends: Patterns that might indicate operational issues.
• Open Claims: Any ongoing liabilities.

This information can affect underwriting and pricing alongside your operations and other application details. The Texas Department of Insurance advises businesses shopping for general liability to keep loss runs current and be ready to discuss claims history. A clean report does not by itself establish acceptance or a lower price.

How to Request Your Loss Run Report

Gather the loss run report insurance carriers request before your quote deadline. Start with your current and prior policies, and keep a record of each request and reply.

Follow these steps to request your reports:

1. Identify All Policies: List every commercial policy your business has held. Include policy numbers, effective dates, and the names of all carriers. This includes general liability, workers' compensation, commercial auto, and property insurance.
2. Determine Required History: Ask the receiving underwriter which years, policies, and valuation dates it needs. The period varies by coverage and market; use that request rather than a fixed number of years.
3. Submit a Written Request: Contact your insurance carrier or authorized broker in writing. Many carriers have specific forms or online portals for this.
4. Provide Key Details: Include your business name, policy numbers, requested coverage lines, and the desired period. Specify that you need currently valued loss runs.
5. Designate Delivery: Name the authorized recipient and use the secure delivery method agreed with your agent or underwriter. Loss runs can contain private claimant information, so do not post them publicly.

When carrier-generated loss runs are requested, do not replace them with your own claim list or a certificate of insurance. If there were no claims, request a report showing zero losses and confirm what form the receiving underwriter accepts.

Key Information to Gather

Before requesting, prepare this information:

• Business Legal Name: Ensure it matches your policy.
• Policy Numbers: For all relevant policies.
• Policy Periods: Start and end dates for each policy.
• Coverage Lines: Specify which types of insurance (e.g., workers' compensation, commercial auto).
• Contact Information: For the authorized recipient of the reports.

State rules can affect who may request a report and when an insurer must respond. Confirm the rules for your state and coverage line with the insurer, licensed agent, or insurance regulator. Do not apply a workers' compensation rule to another line without checking it.

Loss-Run Request Template

Adapt this template to the carrier's process:

Subject: Loss-run request for [business name]

Please provide currently valued loss runs for [named insured], policy numbers [numbers], and policy periods [dates]. Include [coverage lines] and the claim history for those periods. If there were no claims, please provide a report showing no losses. Send the reports to [authorized recipient] using [agreed secure method].

The carrier may need written authorization or its own form. Keep the request date, confirmation, and follow-up contact with your renewal records.

Reviewing Your Loss Runs

Once you receive your insurance loss runs report, review it carefully. This step is crucial before submitting it to an underwriter.

Check for these items:

• Completeness: Are all requested policies and years included?
• Accuracy: Does your business name and policy numbers match?
• Valuation Date: Is the report "currently valued" and recent enough?
• Claim Status: Are open claims correctly noted? Are closed claims truly closed?
• Legibility: Can you clearly read all claim details and totals?

If you find errors or discrepancies, contact the carrier immediately. Ask them to investigate and issue a corrected report. Do not alter the document yourself.

For any open claims, be ready to provide context. Explain what happened, what actions your business took, and any safety improvements made. This helps underwriters understand your risk management efforts.

Preparing for Renewal or New Quotes

Loss runs are a core component of your insurance submission. They help you and your agent prepare for renewals or new quotes.

Consider these points:

• Understand Your Claims: Reviewing your loss runs helps you identify areas for risk improvement.
• Address Open Claims: Ask the claim representative whether the status and facts are current. Provide requested documents, but do not seek to close an unresolved claim just to change the report.
• Compare Coverage: Discuss past incidents with your agent, then review the proposed policy's wording. A prior paid claim does not show that a new policy would cover the same event.
• Common Exclusions and Limits: Discuss how your claims history might affect policy exclusions or coverage limits. For example, a history of property claims might lead to higher deductibles or specific exclusions for certain perils.
• Tradeoffs: Understand the tradeoffs between premium cost and coverage breadth. A lower premium might come with higher deductibles or more exclusions. Your loss runs help inform these decisions.

The SBA business insurance overview introduces common policy types. Compare quotes using the same coverage and limit assumptions. Use Kinro's business insurance quote checklist to organize the rest of your submission.

How to Get Insurance Loss Runs for Your Small Business

Keep your insurance loss runs with the documents for the corresponding policy years. Record which reports you have sent and which remain outstanding so a missing carrier or year does not get overlooked.

To move forward:

• Organize Documents: Keep all declarations pages, policies, and loss runs in one secure place.
• Consult an Expert: Ask a licensed insurance agent to explain report terms and the receiving carrier's submission requirements.
• Review Your Policy: If you need help understanding your current policy terms, consider a Kinro policy review.
• Track Missing Reports: List each outstanding policy period and the carrier contact responsible for the report. Tell the agent about gaps before the submission deadline.

To discuss a quote or renewal, contact Kinro with your current policy details and the requested reports. Keep source documents intact and give factual context when asked. Availability, price, and coverage remain subject to underwriting and the issued policy.

Licensed review

Use this guide as a starting point. A licensed agent should confirm limits, exclusions, and carrier rules before a business relies on any coverage.