A loss run report is a detailed record of every claim your business has filed under its insurance policies over a defined period. Insurance carriers use this report to evaluate your risk profile, calculate your premiums, and determine the terms of your coverage. Want to dive deeper? Read the complete Loss Runs Guide at Peterman Insurance Services.

What Are Loss Runs? A Detailed Guide for Small Business Owners

You may have heard the term “loss runs” thrown around when talking with insurance companies, agents, or other small business owners. But what are loss runs? A loss run report is a detailed record of your company’s past insurance claims. It acts a bit like a credit report for your insurance history by showing underwriters exactly how many claims you have filed, the types of claims, and how much they cost. 

Loss runs are common with many types of insurance including workers’ compensation insurance, general liability, commercial auto, property, professional liability and specialty insurance like cyber insurance. For small business owners the ability to obtain, review, and improve your loss runs can mean lower premiums, smoother renewals, and stronger negotiating power when shopping for workers’ compensation or other commercial lines of coverage.

1. What Is a Loss Run Report?

A loss run report is an official document supplied by your insurance carrier that summarizes all the claims on your policy for a defined period, typically the last three to five years. It includes:

• Policy Details such as policy number and effective dates.
• Incident Dates listing when each accident or loss occurred and when it was reported.
• Descriptions of Loss explaining what happened (for example, a slip and fall in the warehouse or a repetitive strain injury in the office).
• Monetary Information showing what has been paid out so far, what reserves remain open, and any settled amounts.
• Current Status indicating which claims are still open and which ones have been closed.

Underwriters use this information to evaluate your business risk at renewal or when you request a new quote, in much the same way lenders use credit reports to decide on loan terms.

2. What Information Does a Loss Run Include?

Loss runs provide a granular view of your claims history across several key fields:

• Policy Name and Number confirms which policy the report covers.
• Claim Identification assigns each claim a unique reference to track progress.
• Date of Loss and Report Date helps assess how quickly you report incidents.
• Type of Claim categorizes the incident (for example: workers’ compensation injury, property damage, general liability suit).
• Description of Incident gives context that can explain if this was a one-time event or part of a pattern.
• Total Incurred Amount combines paid losses plus outstanding reserves to show the full cost impact.
• Payment History logs each check issued for medical bills, indemnity payments, or legal expenses.
• Claim Status states open, closed, or inactive; open claims can keep your rates higher until they are resolved.

Having all of these details in one place allows you to spot trends such as frequent minor claims that may add up or large one-off losses that require special attention.

3. Why Do Insurance Companies Require Loss Runs?

Insurance carriers require loss runs for three main reasons:

1. Risk Assessment: If your loss report for workers’ compensation insurance shows multiple back injuries in the warehouse you will be flagged as higher risk and may face higher rates until controls are put in place.
2. Premium Calculation: Carriers calculate your experience modification (ex-mod) factor by combining your loss history with industry averages. A high ex-mod can raise your premium substantially.
3. Underwriting Accuracy: Detailed claim histories help underwriters confirm you have not under-reported any past losses. Accurate underwriting prevents unpleasant mid-term audits or retroactive billing adjustments.

Because all commercial lines – workers’ compensation, general liability, commercial auto – rely on past performance to predict future risk, loss runs are a required part of the quoting process.

4. How to Request Your Loss Runs

Most insurance companies will provide loss runs once you follow these steps:

1. Submit a Written Request: Email or mail a formal request letter that includes your business name, policy number, contact person’s name, and the dates you need (for example, January 1, 2020 through December 31, 2024).

Pro Tip: We have email and letter templates for this to make it easier for you! Get your templates now!

1. Comply with State Deadlines: Many states mandate carriers supply loss runs within 10 to 30 days of a written request. Check your state department of insurance website for exact requirements. For Oregon it’s 15 days, for California it’s 10 days under certain circumstances, and for Arizona it’s 10 days and possibly sooner.
2. Use Your Agent’s Help: An independent agent can submit the request on your behalf and track the response to make sure you get a complete report.
3. Review for Errors: When you receive the report confirm that all claim dates and amounts are correct and that closed claims show a zero reserve. Dispute any inaccuracies swiftly in writing.

Having current and accurate loss runs on file will speed up renewals and new-policy quotes and help you plan safety improvements.

5. How Loss Runs Impact Your Premiums

Loss runs feed directly into your experience modification factor, which is applied to the base rate set by your state. Key points to understand:

• Lower Frequency, Lower Cost: A history of few or no claims usually produces an ex-mod below 1.0, yielding a discount on your premium.
• Severity Drives Reserves: High dollar losses keep reserves open and delay the chance for your ex-mod to improve.
• Trend Analysis: Carriers look at the most recent three years of data most closely. Old, small claims eventually drop off the report and no longer affect your rate.

By tracking how each claim affects your modification factor you can see precisely how safety improvements translate into premium savings.

6. Tips for Managing and Improving Your Loss Runs

Taking proactive steps will help you maintain a clean loss run history:

• Invest in Training: Provide regular safety training for new hires and annual refresher courses to reinforce best practices.
• Conduct Audits: Perform quarterly or semi-annual safety audits in high-risk areas to identify hazards before they cause injuries.
• Streamline Claims Handling: Encourage prompt reporting and partner with a your carrier’s case manager or adjuster to manage medical care and return-to-work plans.
• Document Everything: Keep detailed incident reports, witness statements, photos and video (if available) so you can explain unusual events to the underwriters.
• Analyze Annually: Review your loss run reports at fiscal year end to spot recurring issues like repetitive strain injuries in your packaging department. Use that data to implement targeted solutions such as adjustable workstations.

Next Steps
A clear understanding of your loss runs gives you the power to negotiate better terms and control your workers’ compensation and other commercial insurance costs. For personalized assistance in obtaining, reviewing, and improving your loss run reports, contact Peterman Insurance Services today. We help small businesses across Oregon, California, and Arizona enhance safety & security, reduce claims, and achieve more favorable insurance results.