Loss Run Report

Loss Run Report A loss run is a document that records the history of claims made against a commercial insurance policy. It includes the types of claims filed in the past, the frequency of past claims filed and the related costs. This data is used by insurers to help figure out how risky a business is to insure. It is analogous to a credit report. Loss run reports are, essentially, the insurance world’s equivalent to credit scores. Just as a bank would want to see your business’s credit score before offering you a loan, insurers want to see a loss history before providing coverage. This report will reflect on how well the business is operating and managed. Insurance companies provide loss runs for most forms of business insurance, including: -General liability insurance -Business owner’s policy -Commercial property insurance -Commercial auto insurance -Workers’ compensation insurance A loss run report will include information including the date of the claim, the amount paid, and a description of the event. Generally, a loss run will record 5 years of history. Loss Run reports is use to the calculated risk directly impacts the premium amount a business will pay for insurance. The higher the risk, the higher the premium. If you have a lot of employees working in risky jobs, you might need loss runs to assess your firm’s safety culture. However, more commonly, you would need a loss run report to shop for a new insurance policy or carrier. Not only can you use it to review your own business’ risk and create a risk avoidance strategy, but it can help you negotiate your premiums with insurance companies. #benewinsurance #insurtech #inclusiveinsurance #insurance #reinsurance #takaful