Understanding Insurance Loss Run Reports: Why They Matter for Your Business

What Is a Loss Run Report?

Quick definition: your business’s official claims history used for underwriting decisions.

A loss run report is essentially a record of your business's claims history. It summarizes all past insurance claims on your policies and demonstrates potential risks to the insurance companies. Insurers use this report to evaluate how much risk they take by insuring your company: it helps them determine whether they can offer you coverage and what price would be sensible.

In detail, the insurance carriers use the loss run reports, also known as "loss runs," to review:

• All the claims you've filed in the past;

• The financial impact of those claims (e.g., reserves (expected payout) and settlement costs incurred);

• The frequency of those claims;

• The locations where incidents occurred (to determine geographic risk factors).

This data is vital in the underwriting process, as it helps insurance companies determine whether they want to insure your business—and at what cost. Depending on your claims history, insurers might offer you favorable rates, increase your premiums, or sometimes even deny coverage.

Why You Need a Loss Run Report

What insurers expect—and how it helps you secure better terms.

In cases where claims are absent, the loss run report states "No losses reported." However, if you've submitted claims, here's what the report will typically include:

• Policyholder (business) name

• The name of your insurance provider

• Policy number

• Policy term and policy type

• The dates of incidents and when the claims were filed

• A summary of each claim with incident descriptions (e.g., property damage, bodily injury)

• Claims' financial impact (such as legal fees or settlement costs)

• Reserve funds (if any) set aside for open claims, such as costs to settle and various expenses

• The current status of each claim (open, closed, canceled, or record only)

The valuation date is especially important as it ensures the information is up-to-date. Insurers may disregard loss runs generated over 30 days.

When shopping for insurance, it is recommended that you provide up to five years of loss history to ensure the most accurate rate. If your business has been operating for less than five years, submit all available loss run reports for the entire period you've been in business.