Regardless of industry, businesses need a variety of insurance types to cover their exposures and risks. Applying for new insurance for your business or renewing insurance with individual companies may require the business running a loss-run report. But what exactly are insurance loss runs?
Loss Runs Defined
A history of your claims helps the insurance company assess your risks. These numbers inform them about the likelihood of your business filing a claim, so they adjust your premiums to meet the expected filed demands. Your business or the insurance company can request the loss-run report.
The claims history of the company is included in the loss-run report. The risk management strategies of the company and ability to prevent claims filing can significantly affect the insurance premium owed.
Some insurance companies require a business to provide a loss-run report on an annual basis. The reason for a yearly review is due to the type of insurance policies. Occurrence policies can have a claim filed for an incident occurring during the coverage period. Other reasons include open applications and showing new claims filed.
At some point, your business insurance company may request to see your insurance loss runs. Knowing what they are can help you better mitigate your risk, lower your liabilities and reduce your premiums.