insurance

Loss Run

A detailed report showing a policyholder's insurance claims history over a specific period, typically the past 3-5 years. It includes claim dates, types of losses, amounts paid, and claim status, and is commonly requested when shopping for new insurance or renewing policies.

Example

“Before switching insurance companies, the business owner requested a loss run from their current insurer to show prospective insurers their five-year claims history.”

Memory Tip

Loss Run = 'Running List of Losses' - it's a chronological run-down of all your past insurance claims and losses.

Why It Matters

Loss runs are crucial for obtaining competitive insurance quotes and accurate pricing. Insurers use this claims history to assess risk and determine appropriate premiums, making it essential for policy shopping and renewals.

Common Misconception

Many people think they can hide past claims by switching insurers or that loss runs aren't necessary for getting quotes. In reality, insurance companies can access claims databases and typically require complete loss history for accurate underwriting and pricing.

In Practice

ABC Manufacturing requests a loss run showing their last 5 years of workers' compensation claims. The report reveals 12 claims totaling $85,000: three minor injuries ($15,000), two moderate injuries ($35,000), and one major back injury ($35,000). New insurers use this data to calculate an experience modifier of 1.15, meaning their premiums will be 15% higher than the industry base rate. A company with no claims might have a 0.85 modifier, paying 15% less than base rates, demonstrating how loss history directly impacts insurance costs.

Etymology

From 'loss,' referring to insurance claims, and 'run,' meaning a continuous series or record, similar to a 'print run' or accounting run that lists sequential information.

Common Misspellings

lost runlos runloss run reportloose run

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