Key Takeaways
- A loss run report is an insurer-generated record of claims under your policies, usually covering the past three to five years.
- Underwriters use loss runs to judge claim frequency, severity, and trends before quoting your business.
- Total incurred includes both amounts paid and amounts reserved, so open claims with high reserves can make your history look worse than it is.
- Reviewing loss runs early lets you correct errors and prepare a written explanation of large or unusual losses.
A loss run report is a record from your insurance company listing every claim filed under your policy, with dates, descriptions, amounts paid, and amounts reserved. Underwriters request three to five years of loss runs to judge how likely and how costly your future claims may be, explains Bozzuto Group, a San Diego–based specialty commercial insurance brokerage.
If you have ever switched carriers or shopped a renewal, you have probably been asked for "currently valued loss runs." Here is what that means and how to make your loss runs work for you instead of against you.
What is included in a loss run report?
Each carrier formats loss runs differently, but most include the same core fields:
- Policy information: named insured, policy number, coverage line, and policy period.
- Date of loss and the date the claim was reported.
- Claim description, often a short phrase such as "customer slip in aisle" or "rear-end collision."
- Claim status: open or closed.
- Paid amounts, often split between indemnity (payments to the claimant) and expense (defense and adjusting costs).
- Reserves, which are the carrier's estimate of what it will still pay on an open claim.
- Total incurred, which equals paid plus reserves.
- Valuation date, the date the report was run.
If a policy had no claims, the carrier may issue a "no known losses" letter instead of a detailed report. That document counts as a loss run for underwriting.
Why do underwriters want loss runs?
A loss run is the most objective evidence an underwriter has about how your business performs. Applications describe your intentions, while loss runs show results. Underwriters typically look at:
- Frequency: how often claims occur. Many small claims can signal operational problems even if the dollars are modest.
- Severity: the size of individual claims. One large loss may be treated differently from a pattern.
- Trends: whether claims are increasing or decreasing over time.
- Claim types: whether losses cluster around a specific hazard, such as vehicle backing incidents or product complaints.
- Open reserves: claims that are still developing and could grow.
For high-risk industries, where carriers have less industry-wide data, your own loss history can carry even more weight in pricing.
How do you request a loss run report?
- Ask your broker first. Your broker can usually request loss runs from each carrier on your behalf.
- Contact the carrier directly if needed. Many carriers accept written requests from the named insured, and some offer them through online portals.
- Request every line and year. Include general liability, property, auto, workers' compensation, and any specialty lines, typically for the past five years.
- Allow time. Carriers can take days or weeks to respond. Some states set deadlines for providing loss information, but rules vary.
- Keep them current. Underwriters usually want loss runs valued within the last few months, so older copies may be rejected.
How should you read your loss runs?
Focus on total incurred rather than paid amounts. For example, imagine a retailer with a slip-and-fall claim that shows $2,000 paid but a $60,000 reserve. To an underwriter, that claim looks like a $62,000 loss until it closes. If you believe the reserve is too high, ask your broker to request a reserve review from the adjuster.
| Term | What it means | What to check |
|---|---|---|
| Paid | Money already spent on the claim | Matches settlements you know about |
| Reserve | Estimate of remaining cost | Reasonable for the claim's current status |
| Total incurred | Paid plus reserve | Drives how underwriters view severity |
| Status | Open or closed | Resolved claims are marked closed |
What if your loss runs contain errors?
Mistakes happen. Common problems include duplicate entries, claims that belong to a different insured, claims marked open long after settlement, and reserves left on closed files. Each can inflate your apparent loss history. Review every page before your renewal submission and ask the carrier, through your broker, to correct inaccuracies in writing.
Also prepare a short narrative for any significant loss. Explain what happened, what you changed afterward, and whether the exposure still exists. If you sold the fleet that caused auto claims or installed new safety equipment after an injury, say so. Bozzuto Group's loss control services can help you document corrective actions, and our guide to filing insurance claims explains how early, accurate reporting keeps claims from growing.
What if your business has no loss history?
New businesses and companies entering a new industry often have no loss runs to provide. In that case, underwriters lean on other evidence: the owners' experience in the industry, loss runs from a prior business they operated, written safety and quality procedures, and details about facilities and equipment. A thorough submission helps offset the missing history, especially in cannabis, hemp, and other markets where carriers are cautious with startups.
How Bozzuto Group Helps
We gather loss runs from every current and prior carrier, check them for errors, and flag open claims with reserves that may need review. Before your renewal goes to market, we help you write loss narratives that explain large or unusual claims and the steps you took afterward.
For workers' compensation, we review how claims feed into your experience modification factor, which our workers' compensation guide describes. For specialty industries such as cannabis, nutraceuticals, and logistics, we present your loss history in context so underwriters see the full picture. Pricing still depends on each carrier's view of the risk.
Need help pulling or reviewing your loss runs? Call Bozzuto Group at 858-805-1865 or contact our team to get started.
Frequently Asked Questions
How do I get a loss run report from my insurance company?
Ask your insurance broker to request it, or contact the carrier directly in writing as the named insured. Many carriers also provide loss runs through online portals. Request reports for every coverage line and policy year you need, usually the past five years, and allow time for processing since response times vary by carrier.
How many years of loss runs do underwriters need?
Most underwriters ask for three to five years of loss history for each line of coverage. Some lines, such as workers' compensation, may require a specific number of years depending on the carrier. New businesses with less history may be asked for loss runs from prior ventures or for details about the owners' experience.
What does currently valued loss runs mean?
Currently valued loss runs are reports generated recently, typically within the last few months, so they reflect the latest paid amounts, reserves, and claim status. Underwriters prefer current valuations because open claims can change. An older loss run may be rejected or may require an updated copy before the carrier will finalize a quote.
What is total incurred on a loss run?
Total incurred is the sum of what the insurer has already paid on a claim plus the reserve it has set aside for future payments. Underwriters often use total incurred to judge claim severity, so an open claim with a large reserve can affect pricing even if little money has been paid yet.
Can I fix errors on my loss run report?
Yes. If your loss run includes duplicate claims, claims that are not yours, closed claims still marked open, or reserves that remain on settled files, ask your broker to contact the carrier for a correction. Request the corrected report in writing and include it with your renewal submission so underwriters see accurate information.