When you apply for new business insurance coverage, carriers will ask for your loss runs—and without these reports, you can't proceed with quotes. This requirement often catches business owners off guard, leading to delays when seeking new coverage options. Understanding the process can simplify your insurance decisions.
At the Horan insurance agency, we're available to assist Central New York businesses with their insurance questions. Our work with multiple carriers and experience reviewing loss run reports offers perspective on this important part of the business insurance process.
In this article, we'll explain what loss runs are, why carriers need them, and how to obtain these essential reports. We'll also look at how the process differs from personal insurance and what you can expect when requesting quotes from new carriers.
Understanding Why Business and Personal Insurance Claims Reports Differ
Unlike personal auto and home insurance, where carriers share claims data through centralized systems, business insurance works differently. Each carrier maintains separate records, which creates an additional step when you want to explore new insurance options.
Loss runs apply primarily to business owners. You won't typically need to supply these reports for personal auto or home insurance policies.
What Information Do Loss Runs Contain?
A loss run report documents your business insurance claims history, typically covering the past three to five years. These reports provide carriers with a detailed picture of your insurance claim patterns and risk management practices.
Just like a credit report helps lenders assess financial risk, loss runs help insurance carriers evaluate your business. These reports help new carriers:
- Review your past claims experience, including the type and frequency of claims
- Evaluate potential risks based on your history and industry patterns
- Consider coverage options that match your business activity and claims patterns
- Calculate premium rates that reflect your actual loss experience
The Process of Obtaining Loss Run Reports
When you're considering a switch to a new insurance carrier, you'll need to request loss runs from your current insurer. The process works like this:
- Contact your current carrier to request the loss run reports
- Specify the timeframe needed
- Provide the reports to your new insurance agent
- Allow time for the new carrier to review your history
How Loss Runs Impact Your Business Insurance Options
Insurance carriers use these reports to develop their underwriting approach. A clean loss history often leads to more carrier options and competitive rates.
If your business has claims, that doesn't mean you can't switch carriers—the new carrier simply needs this information to evaluate rates and coverage structure.
How to Successfully Navigate the Loss Run Report Process
Without loss run reports, you can't explore new coverage options that might benefit your business. This requirement can feel like another challenge in managing your business insurance.
As Central New York insurance agents, we understand the local business environment and work with multiple carriers. We're here to assist with requesting loss run reports, discussing timeframe requirements, and exploring coverage options based on your business situation.
Click the Get a Quote button below to learn more about your business insurance options from an agency familiar with local Central New York insurance considerations.
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