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Loss runs

Your business’ “permanent record.”

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What are insurance loss runs?

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Loss runs are reports from your insurance provider that detail the past claims you’ve filed under your business insurance policies. They are, essentially, the “permanent record” of every time you’ve had to use your insurance.

Loss runs provide the history of your business’ past insurance claims. Your insurance company generates these reports and includes details such as types of claims, when claims occurred and amounts paid out by your insurance carrier.

Why are loss runs needed?

Similar to how your credit score can determine whether you’ll get a loan or a credit card, potential insurers use loss runs to determine whether your business is eligible for coverage and what your rates will be.

Loss runs are mainly used when getting insurance coverage with a new carrier. However, they can also be a valuable tool to help small business owners when considering purchasing another business. Owners also use them to monitor and improve their own operations and safety practices.

What’s on a loss run?

An insurance loss run report contains a detailed run-down of every claim you’ve made, or claim activity. Different companies include slightly different details in their loss runs, but in general, you can expect to find:

  • Insured’s name or business
  • Policy number(s)
  • Policy coverage dates
  • The dates of any claims you reported
  • Type of claim reported
  • How much the insurer paid to settle the claim if the claim is closed
  • How much the insurer has set aside in reserves, if there are open claims

When you shop for new insurance, most companies request loss run reports from the last 2 to 5 years you’ve been in business. Insurers can only provide loss runs for the period they covered you (aka the policy term). So, if multiple companies covered you over the requested time, you’d need to ask for a loss run report from each of them individually.

When do you need a loss run?

Loss runs are primarily used when shopping for new insurance. By providing your history of claims (or lack thereof), you can prove that your business is a safe bet for insurers and potentially get lower premiums.

Loss runs are used when applying for nearly every type of business insurance, including:

Additionally, a business might make a loss run request to evaluate its own claims history. By exploring how you’ve been using your insurance policies, you can uncover problem areas in your business. This may allow you to alter and improve your safety practices or your operations in general.

The final reason you may need a loss run is when purchasing another business. Just as you would check the foundation of a house before you buy it, evaluating the loss runs of a business you plan to purchase will let you know its risk level so that you can avoid any surprises in the future.

How NEXT makes business insurance easy

At NEXT, we like to keep things simple and fast. With our online portal, you can download free proof of insurance 24/7 and get back to business ASAP.

You can start a quote, customize your options and access your certificate of insurance online immediately — in about 10 minutes.

Start your instant quote today.

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* To the extent permitted by law, applicants are individually underwritten, not all applicants may qualify. Individual rates and savings vary and are subject to change. Discounts and savings are available where state laws and regulations allow, and may vary by state. Certain discounts apply to specific coverages only.
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