What Is a Loss Run? Understanding Your Claims History and Why It Matters
A Republic Insurance Group Risk Management Advisory
Whether your organization is renewing coverage, exploring new insurance options, or preparing for the underwriting process, one document will almost certainly play an important role: the loss run report.
Many business owners, churches, nonprofits, schools, and ministry leaders are unfamiliar with loss runs until an insurance carrier or agent requests them. Understanding what a loss run is, what it contains, and how it impacts your insurance program can help you make more informed decisions and better position your organization in the insurance marketplace.
At Republic Insurance Group, we believe an informed client is a stronger risk. Our team works closely with organizations to help them understand their claims history, identify loss trends, and implement risk management strategies that support long-term insurance stability.
What Is a Loss Run Report?
A loss run report, sometimes referred to as a loss history report or loss run statement, is a document prepared by an insurance company that summarizes an organization's claims history over a specified period of time.
Most loss runs reflect the previous three to five years of claims activity, although some carriers may request additional historical information depending on the type of coverage being evaluated.
Loss runs generally include important information such as:
- Policyholder information
- Policy numbers
- Coverage periods
- Dates of reported claims
- Claim descriptions
- Claim status (open or closed)
- Amounts paid by the insurer
- Outstanding reserves
- Total incurred losses
From an underwriting perspective, the loss run serves as a historical record of an organization's insurance experience and assists carriers in evaluating future risk.
Why Insurance Carriers Request Loss Runs
Insurance companies rely heavily on historical claims information when evaluating an organization's insurability.
Just as lenders review credit histories before issuing loans, insurance underwriters review loss histories before determining:
- Whether coverage will be offered
- Appropriate premium levels
- Deductible requirements
- Coverage terms and conditions
- Risk management expectations
A loss run helps insurers understand not only how many claims an organization has experienced, but also the nature, frequency, and severity of those claims.
For example, a single catastrophic claim may be viewed very differently than a pattern of recurring losses resulting from the same operational issue.
What Types of Insurance Use Loss Runs?
Loss runs are commonly requested across many areas of commercial insurance, including but not limited:
- Commercial General Liability
- Commercial Property Insurance
- Commercial Automobile Insurance
- Workers' Compensation
- Directors and Officers Liability
- Employment Practices Liability
- Professional Liability
- Cyber Liability
- Business Owners Policies (BOP)
- Excess and Umbrella Liability Programs
In many cases, carriers will require current loss runs before providing quotations or renewal proposals.
Organizations that proactively maintain and review their loss history are often better prepared when entering the insurance marketplace.
How to Obtain a Loss Run Report
Obtaining a loss run report is typically a straightforward process.
Organizations can generally request loss runs by:
- Contacting their insurance carrier directly
- Working through their insurance agent or broker
- Accessing carrier online portals, when available
- Submitting a signed authorization request
Because processing times vary among insurance companies, it is advisable to request loss runs well in advance of policy renewal or marketing efforts.
Waiting until the last minute can delay underwriting reviews and potentially impact renewal timelines.
Why Organizations Should Review Their Loss Runs
While underwriters routinely analyze loss runs, organizations should also carefully review them.
A loss run provides valuable insight into operational risks, claims trends, and areas where improvements may be needed.
Verify Accuracy
Like any report, errors can occur.
Organizations should review loss runs to ensure:
- Claims are properly assigned.
- Loss amounts are accurate.
- Claims statuses are current.
- Closed claims are properly reflected.
- No unrelated claims appear on the report.
Inaccurate information can negatively affect underwriting outcomes and premium costs.
If discrepancies are identified, they should be promptly discussed with the insurance carrier.
Identify Loss Trends
One of the most valuable uses of a loss run is identifying recurring patterns.
For example:
- Frequent slip-and-fall claims
- Repeated water intrusion losses
- Commercial vehicle accidents
- Workers' compensation injuries
- Cybersecurity incidents
- Employment-related claims
Recognizing trends allows organizations to address root causes before they result in additional losses.
When risk management improvements are documented and implemented, carriers often view those efforts favorably during underwriting reviews.
Strengthen Risk Management Strategies
A loss run tells a story about organizational risk.
By reviewing historical claims data, leadership can make better-informed decisions regarding:
- Safety programs
- Employee training
- Fleet management practices
- Facility maintenance
- Security procedures
- Cybersecurity controls
- Human resource practices
Organizations that actively manage risk often experience fewer claims, improved insurance outcomes, and greater operational stability.
Can You Hide Previous Claims by Changing Insurance Companies?
A common misconception is that changing insurance carriers somehow eliminates prior claims history.
In reality, insurance companies routinely evaluate historical loss information as part of the underwriting process.
If an organization experienced claims with a previous carrier, those losses will generally be reflected on its loss runs and reviewed by future insurers.
Changing carriers does not erase prior insurance losses.
Instead, underwriters focus on:
- The nature of the claim
- The severity of the loss
- Corrective actions taken
- Whether similar events are likely to occur again
Organizations that demonstrate accountability and meaningful improvements following a loss often present a more favorable risk profile than organizations that simply seek to move coverage elsewhere.
How to Improve Your Insurance Profile
Although losses cannot always be avoided, organizations can take proactive steps to improve how they present to insurance carriers.
Focus on Loss Prevention
The most effective strategy is preventing claims before they occur.
This includes:
- Implementing safety protocols
- Conducting routine inspections
- Documenting maintenance activities
- Providing employee training
- Establishing incident response procedures
- Following best risk management practices
Maintain Strong Documentation
When incidents occur, proper documentation can be invaluable.
Organizations should maintain records of:
- Inspections
- Maintenance activities
- Employee training
- Safety meetings
- Incident investigations
- Corrective actions
Strong documentation demonstrates a commitment to responsible operations and risk management.
Demonstrate Continuous Improvement
Insurance carriers want to see that organizations learn from prior losses.
When claims reveal operational weaknesses, leadership should take steps to address those concerns and document corrective measures.
A demonstrated commitment to improvement can positively influence underwriting discussions.
Allow Time for Results
Claims activity generally remains visible within loss history reports for multiple years.
Organizations that consistently implement sound risk management practices often see improvements in their claims experience over time.
Patience, consistency, and disciplined risk management can help strengthen future insurance opportunities.
Why Your Choice of Insurance Agency Matters
A loss run report is much more than a list of prior claims. It is a strategic tool that can provide valuable insight into your organization's risk profile, operational exposures, and future insurance opportunities.
Understanding how carriers view your claims history, interpreting loss data correctly, and developing effective risk management strategies requires experienced guidance.
At Republic Insurance Group, we do far more than simply place insurance coverage. Our professionals work alongside clients throughout the year to help identify exposures, evaluate claims trends, strengthen risk management programs, and position organizations more favorably in the insurance marketplace.
Whether you operate a business, nonprofit organization, educational institution, church, or ministry, our team is committed to helping you make informed decisions that protect your people, property, assets, and mission.
A strong insurance program begins with a thorough understanding of risk. Reviewing and understanding your loss runs is one of the most important steps toward building that foundation.
Important Disclaimer
This article is provided solely for educational and informational purposes and does not constitute legal, insurance, financial, risk management, underwriting, or other professional advice. Insurance policies are legal contracts, and coverage is subject to the terms, conditions, exclusions, endorsements, limitations, underwriting guidelines, and carrier interpretations applicable to each policy. No statement contained herein should be construed as a guarantee, representation, or confirmation of insurance coverage, claim outcomes, underwriting approval, premium levels, or policy terms. Organizations are responsible for reviewing and understanding their insurance policies and should consult qualified insurance professionals, legal counsel, and other advisors regarding their specific circumstances.