What Is a Loss Run Report?
Having an insurance policy can provide a sense of security and peace of mind. That may be why many of us who own insurance don’t think much about it other than when those regular premiums are due or when we actually need to file a claim. If you’re wondering what your claims history has been over the last few years, or you’re thinking of shopping around for new insurance, you should obtain a loss run report from your current insurance carrier. Read on to learn more about loss run reports and the role they play in obtaining and maintaining insurance.
What Is a Loss Run Report Used for?
A loss run is a report generated by your insurance company showing the claim activity on each of your insurance policies. The loss run serves a number of purposes, including the following:
- Informational: Gives you a detailed account of the claims activity on your policy during a given policy term or terms.
- Initial Assessment: Helps the insurance company assess the risk level of insuring you, and therefore helps determine what your pricing and other terms will be.
- Ongoing Assessment: Helps the insurance company decide whether or not to renew an insured’s policy.
- Shop Around: Can help you obtain better pricing with a different insurance company if you have a claims history with little activity on it.
Therefore, you might use the loss run report as persuasive evidence that you’re a low-risk insured and should receive discounted pricing. Or an insurance company may use the report to justify its pricing or refusal to insure you at all.
What’s in a Loss Run Report?
Regardless of your purpose for obtaining a loss run, the typical report will provide the following information:
- Name and policy number of the insured
- Date of each loss and claim
- A brief description of the claim
- Amounts paid to the insured or on reserve
- Whether the claim is open or closed
If anything looks amiss in your loss run report, you should contact your insurance company for an explanation.
How to Obtain a Loss Run Report
Although it’s a simple request, obtaining a loss run report can often be more of a headache than you might anticipate. Some companies may not want to send your report promptly because they know it might mean that you’re shopping around for a different insurance carrier. However, since each state regulates the insurance industry operating within its borders, there are state laws requiring companies to provide loss run reports within specified timeframes, often just 10 days.
To request the report, first try to email your insurance agent or company since it will be easier to follow up and to maintain a record of your requests. You can also send a letter or call and ask for the appropriate fax number. Keep copies of your loss run requests and contact your state’s insurance commissioner if your agent or company is failing to honor your requests.
If your insurance company is uncooperative or acts unethically, it may be guilty of a breach of contract or bad faith. An insurance attorney can help you understand your rights and whether or not you have grounds to file a lawsuit.
Know and Defend Your Insurance Rights
Most of us just want our insurance to be there when we need it – we don’t know the ins and outs of insurance law. Whether you’re trying to obtain your loss run reports or you’re dealing with an insurance company that won’t honor its obligations under the terms of your policy, an experienced professional can help. Contact a local insurance attorney today to better understand your rights and get help protecting your interests.