So much in life depends upon data, reports and numbers.
One of the most important numbers in anyone’s life is their credit score. When you apply for a credit card or loan, your score determines your eligibility for credit, as well as what rates your creditor will offer you. Credit scores are complex calculations that look at a number of different factors, but ultimately they are reports about your past, or profiles, that help creditors determine qualities about you.
Something similar exists in the world of insurance: loss runs.
If you’re applying for new insurance or looking to renew an existing plan, you’ve probably heard about a loss runs request. Or you will soon.
So, what exactly are loss runs?
Loss runs, explained
Loss runs are reports about your past. Specifically, they are reports about your past insurance coverage and your claims history. They document incidents that happened, resulting claims, and how those claims were resolved through your insurance company.
Loss runs are generated by your insurance provider. They document claims over the term of a plan you have with them.
How loss runs reports impact you
Like a credit score, loss runs are profiles that document your business’ history in order to help others determine a quality about your business. Specifically, loss runs determine your risk and insurability.
In practice, they determine whether an insurer is able or willing to insure you.
Your loss run report can also impact the specifics of a plan you negotiate with a company. For instance, a loss runs report that indicates a history of high-value claims being paid out might be grounds for higher premiums, whereas a history of little to no claims might influence lower premiums.
What loss runs look like
A typical loss runs report consists of several kinds of information:
About you or your business– The name of you or your business. Other information might include:
- A mailing address
- An identification number
About your insurance policy– The basics of your plan, including:
- Policy provider
- Policy name or kind
- Policy number
- Policy term
About your claims– A detailed breakdown of each claim, including:
- Date(s) of occurrence and your report thereof
- Description of the incident, including relevant details
- Category of the claim: general liability, professional liability, etc.
- Claim status: open or closed
- Amount paid, to date, for fees, settlements, rewards, etc.
- Reserve funds set aside for future payment
About your lack of claims– If there are no claims (congratulations!), the report will say “no losses reported.”
Now that you know what loss runs are, how they work, and what to expect on one, it’s time to think about what a loss run request is and how it works.
Loss runs request & how to request a report
As the name implies, a loss run request is what’s submitted when a loss run, or report, is requested. You may need to provide a loss runs report to a new insurance provider, or you may just want to get a closer look at your insurance information.
In any case, you request a loss runs report from your current provider.
In most US states, your insurance provider is legally obligated to fulfill your request for a loss runs report. That said, how can you obtain one?
How to request a loss run report
You may not even need to file any kind of official request. In today’s digital age, since many companies value making things easily accessible, your loss runs may be available for download in an online portal.
If your insurer doesn’t provide such a service, however, you should reach out to your point of contact and ask for a loss runs report. They’ll know what you mean, but you should specify certain things like:
- The term required
- The deadline you need it by
If you’re being asked for a loss runs report by a new insurer you’re considering, you will likely be given a timeframe they want reported on (3 years, 5 years, etc). Make sure to give yourself enough time to pass along your information; loss run reports can take anywhere from a day to a week or more to generate.
Your state may have regulations in place that require your insurer to respond to your request and generate a report within a given time frame. Stay up to date on the expectations you have a rightful claim to.
Loss runs & small business insurance
Loss runs requests are just one reason shopping for new insurance or renewing existing plans can be tricky. Here at Thimble, our mission is to simplify the process across the board, connecting people with the insurance that’s best for them and their small businesses.
We’ve redesigned the way you can get coverage by making it possible to choose a policy by the hour, day, or month. It’s insurance that works when you do.
To that end, we offer bothgeneral liability insuranceandprofessional liability insurancepolicies that protect businesses from third-party claims of:
- Bodily injury
- Personal injury
- Advertising injury
- Property damage
- Professional negligence
In less than 60 seconds, you can go from zero protection to having coverage. We’ve taken the hassle out of insurance. And we’ve made it affordable.
We hope with this knowledge in hand, you can make an informed, intelligent, and effective insurance decision. Go get ‘em.
