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What exactly is a Loss Run?

Loss runs. Have you ever heard of the term and wondered what it is? If you’ve been involved in working with an insurance company regarding premium options on your property, you’ve more than likely been asked to provide a loss run on your current or prior insurance plan. Some common questions are, what are loss runs, how do I get them, and why do they matter? Well, let us illuminate this topic for you!

In the world of insurance underwriting and insurance rates, an underwriter would like to be able to determine what the insurance losses or claims will be for the upcoming policy period.  Since no one can predict the future, the best place to look is in the past claims history.  Most underwriters will try to review up to the last five years, but there are no set rules for how far back an insurer would review. Once the history is received, the underwriter will then try to determine an overall loss ratio for the business.

The history that is requested is then provided in the form of a loss run.  A loss run is a form or report that can be provided by a current or prior insurance carrier.  Most of the time it will include:

  1. Named Insured
  2. Insurance carrier
  3. Policy dates
  4. Premium (sometimes)
  5. Short description of claims
  6. Total claim payment
  7. Outstanding reserve if a claim has not been fully paid
  8. Details if a claim has been closed or is still open.(this could result in the values changing)

A loss run can be provided anytime a client requests it.  Some carriers provide these automatically but not always. Since the information can be sensitive, a carrier will not release loss runs to anyone other than the client or agent.  Many times, loss runs, or reviewing past history on the property, can end up being beneficial to the owner as it allows the client to seek more details from an adjuster if there are open claims or other issues on the property.  More often than not, a client may or may not be aware of the final results or total payment on a claim. This is why a loss run can be helpful.

For more details on loss runs or claims, contact Ramey King Insurance at 800-453-9691 or www.rameyking.com or 320 Eagle Dr., Ste 210, Denton, TX or info@rameyking.com. We’d love to help you out today!