If you’re considering changing your business insurance provider or exploring new coverage options, understanding “loss runs” is crucial. In this article, we’ll explain what loss runs are, why they’re essential for shopping for new insurance, and how you can obtain them easily without causing any concern to your insurance agent.
What Are Loss Runs?
Loss runs are detailed reports from your insurance company that outline the history of claims made on your policies. They provide a summary of incidents where insurance was used. Here’s what you can expect to find in these reports:
Claim Dates
The dates when each claim was filed.
Claim Amounts
The amount of money paid out for each claim.
Types of Claims
The nature of each claim, such as property damage or employee injuries.
Status of Claims
Whether claims are still active or have been resolved.
These reports are like a record of your business’s past insurance activity, helping you and potential insurers understand your risk history.
Why Are Loss Runs Necessary for Shopping for New Insurance?
Comparing Insurance Providers
When you shop for new insurance, loss runs are vital. They give prospective insurers a clear picture of your past claims history. Insurance companies use this information to assess your risk and determine your new premiums.
Accurate Quotes
Loss runs help insurers provide accurate quotes. Without them, insurers may not have a complete understanding of your risk profile, which can lead to inaccurate pricing and coverage terms.
Negotiating Better Terms
A clean history of loss runs can help you negotiate better rates and terms with new insurance providers. On the flip side, if you have frequent or significant claims, understanding your loss runs can help you find insurers who are willing to cover higher-risk businesses.
Smooth Transition
If you’re switching insurers, your new provider will likely request loss runs from your previous insurer. Having these reports ready ensures a smooth transition and avoids delays in securing new coverage.
How to Obtain Loss Runs
Requesting from Insurance Providers
To get your loss runs, contact your current or past insurance companies. Provide them with your policy details and business information. Insurers are required to provide these reports, though you may need to fill out some paperwork.
Working with Your Insurance Broker
If you have an insurance broker, they can request loss runs on your behalf. Brokers have established relationships with insurers and can streamline the process for you.
Using Online Portals
Many insurers offer online portals where you can request and download your loss runs. Check if your insurer provides this option, as it can make the process faster and more convenient.
How to Obtain Loss Runs Without Worrying Your Insurance Agent
Be Transparent
When requesting loss runs, clearly explain that you need them for exploring new insurance options. Let your insurance agent know this is a routine part of shopping for coverage and not a sign of dissatisfaction.
Provide Context
If you’re considering new insurance providers or quotes, inform your agent. Most agents will understand that obtaining loss runs is a standard procedure when changing or comparing insurance.
Keep Communication Open
Maintain open communication with your insurance agent throughout the process. This helps prevent misunderstandings and reassures your agent that you’re managing your insurance needs responsibly.
Request Periodically
Regularly reviewing and obtaining loss runs can help normalize the process. By making it a routine part of your insurance management, you avoid raising any concerns and ensure you’re always prepared.
Skip Your Agent and Request Loss Runs Directly From Your Insurance Company
In the event your insurance agent is unresponsive or cannot be reached, you can request loss runs directly from your insurance carrier. This can be done by sending a written request directly to your insurer.
Conclusion
Loss runs are an essential component of shopping for new business insurance. They provide crucial information about your past claims, which influences your premiums and coverage terms with potential new insurers. By understanding how to obtain and use loss runs effectively, you can ensure a smooth transition to new insurance coverage and make informed decisions for your business. With the tips provided, you can handle the process with confidence and maintain good relations with your insurance providers.
