Loss Runs are like the insurance industry’s version of a credit score. They’re a written statement from your current insurance company showing how much money, if any, they’ve paid out in claims on your behalf, and why. You can learn more about what’s actually in a loss run report on our website and then, if you decide to switch insurance agents or you just want to see what’s on your loss run report, you can request loss runs from your current agent by downloading a sample loss run request letter.
The most common reasons companies want to see your loss runs:
- To get a clear picture of your claims history.
- To verify prior insurance coverage for underwriting purposes.
- To look for patterns of frequency or severity of loss which may cause them concern.
- To identify specific employees who are repeat claimants.
- To calculate your loss ratio for underwriting purposes.
Any time you ask another insurance company to provide you with a quote, that company must have a copy of your Loss Runs, because it paints a very accurate picture to them of your operation. It is like a doctor diagnosing a patients symptoms and reviewing their medical history.
Can you imagine trying to get a mortgage on a house and expecting the lender to be satisfied when you tell them your credit is ‘good’? Absolutely not, they must have an actual credit score report, and so too, insurance companies must have your Loss Runs.
But, what if my business has had insurance claims?
To clarify, just because you’ve had a claim, doesn’t necessarily make you an undesirable customer. Your Loss Runs will give the insurance company explanations of any claims. So, if it’s something that was out of anyone’s control, such as a deer strike or an unavoidable collision, then the underwriter will take that into consideration.
Sometimes bad things happen to good people. Insurance companies realize this, so they won’t necessarily decline to insure you just because you’ve had a claim. What matters most is what caused the claim and what you’ve done since then to prevent it from happening again.
Our insurance company constantly is in the process of posting new and relevant blogs to help you prevent accidents and stay safe. We write a lot of Non Emergency Transportation Insurance and would gladly provide you with a free insurance quote so you can understand the great price we offer and how we are interested in helping you succeed. When we are ready we can assist you in obtaining your Loss Runs. We believe it is in your best interest to work with an independent insurance agency.