LOSS RUNS, MADE SIMPLE
Loss runs, made simple
Loss runs are one of the most important—and sometimes most frustrating—parts of shopping for business insurance. Fernstone helps you understand what you need, track down the right reports, and make sure your insurance history is presented accurately.
A PRACTICAL GUIDE
Loss runs, step by step
UNDERSTANDING LOSS RUNS
What is a loss run?
A loss run is a report produced by an insurance carrier that shows the claims history for one of your business insurance policies. Think of it as an official record of the claims reported during the time that carrier insured your business. The report typically includes the date and type of each claim, whether it is open or closed, how much the carrier has paid, and any money it has reserved for future payments.
Why do insurance companies ask for loss runs?
Insurance companies use loss runs to understand your business’s claims history and evaluate its risk. Along with information about your operations, payroll, revenue, vehicles, locations, and coverage needs, loss runs help an underwriter decide whether to offer coverage and at what price. For many types of commercial insurance, carriers will not provide a firm quote without them.
I have never had a claim. Why do I still need loss runs?
The insurance company needs confirmation directly from your previous carriers. A carrier-issued loss run provides an official record showing no reported losses. A clean loss history is a positive part of your submission and will help you qualify for better pricing / more coverage options. Think about it like a positive reference check when applying for a job.
REQUESTING AND USING REPORTS
How do I get my loss runs?
You can usually request loss runs from your current or former insurance broker, directly from the insurance carrier, or through the carrier’s online portal. You need your business name, policy number, policy period. If multiple carriers have insured your business, request a separate report from each one.
Can Fernstone help me get my loss runs?
Yes we can. We will work with you to track down an old certificate of insurance, policy document, invoice, or other record showing who insured your business. Once we identify the correct carriers and policy numbers, Fernstone can prepare the requests, collect required authorizations, and follow up until we receive the reports. If you cannot find every document, we will help piece together what is available and determine the best next step.
I am friends with my current or former broker. Will they know I am shopping?
Not if you request your loss runs directly from the insurance carrier. You do not have to involve your broker. If you ask your broker to provide the reports, they may assume you are shopping. Fernstone can help identify and contact carriers directly so you can explore options without unnecessarily involving your current or former broker.
How does getting my loss runs benefit me?
Loss runs show the claims history insurers use to evaluate your business. Reviewing them early helps confirm accuracy, identify open claims, review reserves, explain past losses, avoid quoting delays, reach more carriers, and improve your negotiating position at renewal. The goal is to give underwriters a complete and accurate picture of your business.
Can I use the loss runs Fernstone helps me obtain with other brokers?
Yes. You can share your loss runs with another broker. They are part of your business’s insurance history, and working with Fernstone does not prevent you from using them elsewhere. Another broker or carrier may request an updated copy or additional authorization.
TIMING AND REQUIREMENTS
When should I get my loss runs?
Start early—ideally 60 to 90 days before your renewal date. That gives you time to request reports from multiple carriers, follow up on delays, correct errors, and answer questions about previous claims. Waiting until the final weeks can limit the carriers able to review your business.
How many years of loss runs do I need?
Most insurance companies ask for three to five years of loss history, although some request more. The requirement depends on the insurance type, carrier, industry, and complexity of your business. Fernstone will tell you which policy periods and coverage lines are needed.
How recent do my loss runs need to be?
Insurance companies generally want loss runs valued within the last 30 to 90 days. The valuation date tells the underwriter when claim information was last updated. Requirements vary, so an older report may need to be refreshed before a quote is finalized.
Do I need loss runs for every type of insurance?
Not always, but you may need separate reports for workers’ compensation, general liability, commercial auto, property, professional liability, and umbrella or excess liability. If different carriers provided different policies, each carrier may need to produce its own loss run.
FIXING ISSUES AND UNDERWRITING OUTCOMES
What should I do if a claim on my loss run is incorrect?
Tell your broker or insurance carrier as soon as possible. Common issues include claims that should be closed, incorrect payments, outdated reserves, duplicates, or claims assigned to the wrong policy. Fernstone can help identify issues and ask the appropriate carrier or claims team to review them, but only the carrier can officially change its records.
What if an old claim is still open?
An open claim does not automatically prevent coverage, but the underwriter will probably want more information: what happened, why it remains open, how much has been paid and reserved, and what your business has done since the loss. A clear explanation and current claim information can make a meaningful difference.
What if my broker or carrier is taking too long to respond?
Follow up in writing and keep a record of every request. Confirm the correct business name, policy numbers, coverage lines, and policy periods. Fernstone can follow up, contact the appropriate carrier departments, and determine whether a different authorization or request method is needed.
NEED HELP?
Let’s get your loss runs together.
Fernstone can help identify what is needed, request the right reports, review them for potential issues, and prepare your business for the insurance market.