What is a Loss Run Report and How Can it Help or Hurt Your Policy Premium?

An insurance Loss Run report provides a detailed account of your insurance policy claim activity for a given period of time. Insurance carriers use this historical data to predict future risk. Similar to how a bank checks a loan applicant’s credit score to determine risk before issuing a loan, an insurance carrier will request a Loss Run report to assess risk before issuing a new policy.

That’s actually how it got its name. When a business with a significant loss history applies for insurance, the carrier runs. OK, that’s not true.

Nearly all insurance companies require a Loss Run report to issue a quote for business insurance—whether it be workers’ compensation, professional liability, general liability, commercial property, or a business owner’s policy. The Loss Run report helps the carrier calculate the premium for the policy. A business with multiple high-dollar claims poses a larger threat of risk than a business with a relatively clean record. This risk analysis factors into their calculation for determining the premium.

A Loss Run report typically includes the following information:

Claim Details: Information about each claim, including the date of injury, date reported to the carrier, nature of the injury, and body part(s) involved. Frequent claim activity could alert underwriters to insufficient accident prevention and safety protocols, so it’s important to provide an explanation for any loss activity.

Claimant Information: Details about the party filing the claim, including their name, occupation, and accident description.

Payment History: Includes the amount paid for each claim and any 3rd Party recoveries.

Claim Status: The current status of each claim. For example, is it open or closed, or an Indemnity or Medical claim?

Legal Status: Provides current litigation status if applicable.

Policy Information: The insurance policy associated with each claim, including policy number and policy periods.

A Loss Run report contains sensitive and confidential information. It’s crucial to handle these reports with care and share them only with individuals who have a legitimate business need to access the information.

Once you receive the report, be sure to spend time reviewing it thoroughly to check for inaccuracies. You should be able to identify every claim and injured employee in the report. An accurate loss history helps insurers price policies correctly. Incorrect information and/or invalid claims will affect your premium. If you find an error, contact your carrier immediately.

Be sure to note the valuation date of the report. The valuation date helps ensure that carriers are receiving the most up-to-date information on any open or newly reported claims. Carriers often require that a Loss Run report be currently valued within 30, 60, or 90 days–meaning that the valuation date listed on the report falls within 30, 60, or 90 days of the application date. Underwriters typically won’t consider information older than this, as claim status and details can change significantly in a short amount of time.

How to Obtain a Loss Run Report

Keep in mind that each carrier has its own system for processing these requests. Your first step is to find out if your carrier requires a written request or if you can submit your request online. Be sure to include the name of your business, policy number, and desired time frame for receiving the report. Since it’s up to each state to regulate the insurance industry operating within its borders, state laws dictate the specific timeframe, which is typically ten days.

ICW Group makes obtaining a Loss Run report a breeze. By logging into ICW Group’s myResource policyholder portal, business owners can pull a Loss Run report for their workers’ compensation policy at any time.

Using a Loss Run Report to Your Advantage

Sometimes, bad news can be enlightening. A Loss Run can provide valuable insight into claim frequency and severity to help business owners monitor and improve their safety practices. Examining the report in detail may reveal patterns in types of claims and areas for improvement. If injuries occur repeatedly in certain locations or within certain departments, for example, a Loss Run report can help owners identify and correct trends by improving working conditions or addressing training opportunities.

Make the Loss Run report work for you. Obviously, insurers want to identify the level of risk associated with your business. But from a business owner’s perspective, a Loss Run report is so much more than that. It can help you analyze the hazards associated with running your business and establish a plan to better mitigate them. If your claims history is high, the report can help you retool safety operations. Conversely, if the report shows consistently low claim activity, you can use that evidence to demonstrate your low-risk level.

Don’t Wait Until You’re Applying for a New Policy to Request a Report

Business owners should review their Loss Run report annually to ensure they are up to date with all claims, even if they’re not applying for a new insurance quote. A Loss Run report can be an essential tool for both parties. For carriers, it helps determine appropriate coverage and pricing. For business owners, it provides valuable data that can be leveraged to secure a lower premium or used to inform better practices.

ICW Group
ICW Group
ICW Group is a national, multi-line insurer with an A (Excellent) rating from A.M. Best, quoting over $3 billion annually, and the largest privately held insurance company based in California. We distinguish ourselves in the market by offering our insureds free, cost-saving services, highly proactive in-house claims handling, aggressive anti-fraud services, and industry-leading in-house risk management services designed to help insureds achieve fewer and less costly claims and lower their future premiums. For more information about ICW Group, visit www.icwgroup.com.

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