Loss Runs
If you've ever shopped for insurance, you may have been asked to provide "loss runs." This request can be confusing if you're not familiar with the term. Here's what you need to know about loss runs and why they're important.
What is a Loss Run?
A loss run is a report from your current or previous insurance company that shows your claims history. It typically includes information about any claims you've filed, the dates of those claims, the amounts paid out, and whether the claims are open or closed. Think of it as a "report card" for your insurance history.
Why Do Insurance Companies Request Loss Runs?
Insurance companies use loss runs to assess risk. When you apply for a new policy, the prospective insurer wants to understand your claims history to:
- Determine if you're a good risk to insure
- Calculate an appropriate premium for your coverage
- Identify any patterns that might indicate future claims
- Verify the accuracy of information you've provided
What Information is Included?
A typical loss run report includes:
- Policy number and effective dates
- Date of each claim
- Description or cause of loss
- Amounts paid and reserved
- Status of each claim (open or closed)
How to Obtain Your Loss Runs
To obtain your loss runs, you'll need to contact your current or previous insurance company. Most insurers require a written request, which can often be submitted via:
- Email to the company's customer service department
- A form on the insurer's website
- A letter or fax to the appropriate department
- A request through your current insurance agent
Most insurers are required to provide loss runs within a reasonable timeframe, typically 10-14 business days. Be sure to request your loss runs early in the shopping process so you have them ready when needed.
How Many Years of Loss Runs Are Needed?
Most insurance companies request 3-5 years of loss run history. If you've changed insurance carriers during that time, you may need to obtain loss runs from multiple companies. For commercial insurance policies, five years is typically required.
Need Help?
If you're shopping for insurance and need help obtaining your loss runs, the Steele Agency can assist you. We can often request loss runs on your behalf with a signed authorization, making the process easier for you. Contact us today for assistance.