You may have heard the term “loss run” or “loss run report” when applying for business insurance or renewing your policy.Â
Insurers use a loss run report to figure out the risk level of a certain client. However, loss run reports can also help you, the small business owner, lower your insurance premiums and gauge how safe you’re being.
So, what exactly is an insurance loss run report, and how do you go about getting one?
Keep reading to learn exactly how to get a loss run report and understand what it includes.
The Basics of a Loss Run Report
A loss run report shows the history of claim activity on a commercial insurance policy. Insurance providers use loss run reports for a variety of purposes, such as assessing your risk level and underwriting or determining your premiums.Â
Your current insurer may use a loss run report to analyze your claim history when deciding whether or not to renew your policy.Â
In the insurance industry, providers use a loss run report similarly to how banks use your credit score when you apply for a credit card or loan.
Let’s say you had a hard year and, unfortunately, your loss run report shows a lot of claims. Your insurance provider may decide not to renew your policy or they may assign you higher premiums as a riskier policyholder.
If you don’t have a lot of claims, your insurance broker can use a loss run report as leverage when shopping for insurance. Why? Because now you can prove you’re a low-risk and responsible policyholder, which can help you find lower premium rates.
How to Request a Loss Run Report
Loss run reports are created by your insurance carrier. If you want to request a report, all you need to do is contact your insurance agent or broker with a loss run request, and they'll contact your carrier.
‍
You can ask for a loss run report for pretty much any type of business insurance, such as workers’ comp, commercial property, general liability, and professional liability insurance.
‍
You’ll need to provide the business name listed on the policy and the policy number of the report you’re requesting (though your agent will most likely know this information).Â
Additionally, you should let them know how many years of claim history you want to see and how soon you need the report delivered.
Many insurance providers can produce a loss run within one day to one week of your request. In fact, most state regulations require loss run reports to be fulfilled within 10 business days of the request.
How to Interpret a Loss Run Report
Loss run reports follow a fairly standard format. Your agent or broker can help you interpret it, but generally when reading a loss run report, you can expect to see a detailed list of your claims history and the associated costs.
For each claim, you’ll see the following information:
- Policyholder nameÂ
- Policy number and policy term
- Date of incident
- Date of claim
- Description of claim
- Settlement costs (or amounts on reserve)
- Claim status (open or closed)
If an insurance company requests a loss run report from your broker (because they're trying to decide if they should insure you), the company will typically ask for five years of history or however long you held that policy.Â
If you’re the type of business with several different policies or you happened to switch providers, your broker will need to request a loss run report from each insurer to get an entire claim or loss history. If your business has not filed any claims on the policy, the report will state “no losses reported.”
The insurance provider will then review the loss run report to see how often you’re making claims and their price tag. They may also review how long it took you to make a claim after an incident happened.Â
Again, the information in a loss run report not only helps insurers decide whether to insure you but also how much your premiums should be—and can help your broker bargain for more affordable policies (if you don’t have a lot of claims).
Using Loss Run Reports to Improve Business Practices
Of course, in an ideal world, your broker would use your loss run report to negotiate lower premiums. But you’re a business owner and you know, more than anything, things happen. So what if you have a lot of claims on your report? Is a loss run report still valuable?
The answer is yes.
A loss run report is an excellent way to gauge how safe your workplace is and improve your bottom line.
Let’s look at a few examples using a loss run report for a workers’ compensation policy.
Analyzing Workplace Safety
Let’s say you’ve had a pretty good year, in terms of accidents, but you know there were a few incidents. So you decide to ask for a workers’ comp loss run report. You see there were five accidents throughout the year, and four of them were slips and falls at your warehouse.Â
Not only are these incidents leading to more insurance claims, but when an employee incurs lost time due to an injury, it affects your overall operations and productivity levels. Â
By analyzing all of your claims in one report, you can see the larger patterns. Understanding the type of claims in your history lets you discover opportunities to improve workplace safety and reduce the financial impact of workers’ comp incidents.
In this situation, you might decide to implement some safety measures at your warehouse to prevent your workers specifically from slipping or falling.
With better risk management practices, you could see fewer claims, lower insurance premiums, and a less time lost.
Identifying High-Risk Individuals
Let’s say instead of finding four slip and fall accidents, you realize you have several workplace injury claims for a single employee.Â
Now that you know who your high-risk team member is, you can make sure they understand the safety protocols. And you can revisit safety procedures. You might find that employee training needs to be improved or that you need additional safety equipment.
In other words, you can look for what’s causing a high number of claims and adjust your day-to-day to stop more incidents in the future.
Managing Open Claims and Reserve Amounts
Your report also details claims reserves, which is the amount of money set aside for a claim that has been reported but not yet settled. The claims reserve is sometimes known as reserve funds.
Claims reserves are ultimately estimates made by your insurance company. You may want to keep an eye on these if you think an assessment may be significantly miscalculated.
Get a Loss Run Report to Save Money
A loss run report can help your insurance broker get you lower premiums when shopping for (and negotiating) an insurance policy on your behalf. Not in the business for a new policy right now? Or think you had too many accidents? Well then the report can help you identify common risks and improve the safety of your workplace. And now that you know all about how this helpful tool can save you money (and stress)—all that's left to do? Get out there and request that report!
1. Introducing Yourself
Your introductory email needs to pack a lot of information into a small package. Try something like this:
Sample
Text Copied to Clipboard
Copy

Hello Jane,
‍
My name is John Doe and I work for ABC Agency, where we provide business insurance policies to many of Dallas' rockstar small businesses.
‍
Congratulations on your new business, Jane's Bakery. Are you wondering if you have all the insurance you need? Or if your policies will really cover you in a pinch?
‍
At ABC Agency, we pride ourselves on providing robust, comprehensive coverage options to companies like yours with flexible, pay-as-you-go plans.
‍
Are you available this week to talk more about how we can help? I can help you find the most affordable rates and the best policies out there.
‍
I look forward to speaking with you soon.
‍
Cheers,
‍
John Doe
2. Presenting a Quote
Once you've met with your potential client, a quick reply with their quote will get the ball rolling.
Sample
Text Copied to Clipboard
Copy

Hi Jane,
‍
Thanks so much for meeting with me this morning. I loved touring Jane's Bakery–I can still smell those delicious chocolate chip cookies baking! You have a great location, and I'm sure you're going to do great on Front St.Â
‍
After reviewing my notes, I've pulled together an insurance quote for you (attached). I recommend a business owner's policy. A BOP includes several insurance products in one: liability, property insurance, and business interruption insurance. It offers robust coverage at a competitive price.
‍
I'll call you in a few days to see what you think about this insurance plan. In the meantime, if you have any questions, don't hesitate to email me or call me at [phone number].
‍
Again, thank you for your time today. I look forward to working with you in the future.
‍
Cheers,
‍
John Doe
3. Thanks for Purchasing a Policy
Gratitude is important! It's never a bad idea to thank your clients for their business.
Sample
Text Copied to Clipboard
Copy

Hi Jane,
‍
Thank you for choosing a business owner's policy with ABC Agency. We know it's so important to get the right coverage for your business, and we are honoured you've placed your trust in us.
‍
We're excited to work closely with you, and our no. 1 goal is to make sure you're business is always protected.Â
‍
Do you have any questions? We are here to help. Reach out whenever something comes to mind.
‍
Thank you again for choosing ABC Agency to insure Jane's Bakery.
‍
Cheers,
‍
John Doe
4. Welcome Email
A welcome email helps clients feel like you're there to help–and can softly pitch other insurance products you offer.
Sample
Text Copied to Clipboard
Copy

Dear Jane,
‍
Welcome to the ABC family! We are thrilled to have you as a new customer and can't wait to meet all of your insurance needs.
‍
As an independent insurance agency, we work with multiple insurance providers to find the best coverage options for all our customers. If you need any other type of insurance–like [include additional offerings unique to your agency, like life insurance, health insurance, home insurance or anything else]–we can help you too.
‍
Do you want to discuss any of these policies?
‍
Cheers,
‍
John Doe
5. Introducing a New Product
A happy client may want to expand their business with you.
Sample
Text Copied to Clipboard
Copy

Hello Jane,
‍
I hope all is well with you and Jane's Bakery. I stopped in yesterday for a blueberry muffin and coffee, and they were delicious. I loved the hint of cinnamon in the muffin! Was that your idea?
‍
I wanted you to be the first to know we are now offering commercial vehicle insurance to our policyholders. Auto insurance for your catering vans is super important since your personal car insurance won't cover them.
‍
We're offering this insurance coverage solely to our current business clients at the moment and have some very competitive rates.
‍
Would you like me to work up a quote for you?Â
‍
As always, thanks so much for being a part of the ABC family.
‍
Cheers,
‍
John Doe
6. Asking For Referrals
Once your relationship is established and comfortable, let your clients help you grow.
Sample
Text Copied to Clipboard
Copy

Hi Jane,
‍
You've been a valuable member of the ABC family for two years now, and we so appreciate your business–not to mention the muffins you supply for our monthly meetings!
‍
Because you are a valued policyholder, I wanted to ask a quick favour. I know you are active in the local Chamber of Commerce, and I'm hoping you might know some colleagues who would benefit from working with our insurance company.
‍
Referrals are one of the most effective ways to connect with our community since people really trust their friends, family and colleagues. Is there anyone you'd recommend I speak with?
‍
Remember that in addition to business insurance products, we offer everything from life insurance policies to pet insurance.
‍
As a thank you for your help, we will send you an Amazon gift card of $100 when your referrals buy insurance from us.
‍
Thanks so much for your help!
‍
Cheers,
‍
John Doe
7. Policy RenewalÂ
If your client needs to renew their policy with you, send an email like this:
Sample
Text Copied to Clipboard
Copy

Hi Jane,
‍
I hope you're doing well! What a year it's been—from being listed as one of the top 5 bakeries in Dallas to being an official vendor for the city—you have so much to be proud of.
‍
Just a heads up that your business owner's policy is up for renewal soon and will expire on June 15, 2023.Â
‍
If you're still happy with the coverage, we can easily renew it for you.Â
‍
Do you have some time to chat this week?
‍
Looking forward to serving you again!
‍
Cheers,
‍
John Doe