Loss Runs
Historical claims reports provided by carriers showing an insured's loss history over a specified period.
What It Is
Loss runs are detailed reports of an insured's claims history, typically covering the most recent 3-5 years. They are issued by the current or prior insurance carrier and include claim dates, descriptions, paid amounts, reserves, and status (open or closed).
Loss runs are a mandatory component of virtually every commercial insurance submission. Underwriters use them to evaluate the risk's claims profile, identify trends, and price the coverage appropriately.
Why It Matters for Brokers
Loss runs are the single most influential document in the underwriting process after the application itself. Clean loss runs improve terms and pricing; poor loss runs can make a risk unplaceable in the standard market. Brokers must request loss runs well in advance of renewal — carriers can take 2-4 weeks to produce them. Late loss runs delay submissions and compress the marketing window. Brokers who present well-organized submission packages with complete loss data and risk narratives consistently receive more competitive quotes from underwriters. Understanding underwriting appetite by carrier allows brokers to target submissions more effectively, reducing wasted effort and improving hit ratios. Loss control recommendations from underwriters should be tracked to completion, as unaddressed recommendations can lead to nonrenewal or restrictive endorsements. Market conditions shift underwriting guidelines regularly, requiring brokers to maintain current intelligence on carrier appetite and authority levels. Loss control follow-up documentation should be tracked to completion, as unaddressed recommendations can trigger nonrenewal or restrictive midterm endorsements.
Real-World Example
A broker requests loss runs 90 days before renewal for a construction client. The loss runs reveal three open workers comp claims totaling $180K in reserves. The broker works with the client to implement a return-to-work program and provides the improvement documentation alongside the loss runs in the submission.
Common Mistakes
- 1Requesting loss runs too late, compressing the marketing timeline
- 2Not reviewing loss runs for accuracy before submitting to new carriers
- 3Failing to provide context or narrative for large or unusual claims
- 4Not requesting loss runs from all prior carriers for the required period
How brokerageaudit.com Handles This
BrokerageAudit tracks loss run request timelines and automatically follows up with carriers, ensuring loss runs are available well before submission deadlines.