Article Reviewed by a licensed insurance professional: Sam Meenasian (CA dept of insurance license #0F75955).
Alright, let’s talk about loss runs. If you’re a small business owner and you’ve ever had to deal with insurance (and I bet you have), the term “loss runs” might sound like some insurance jargon, but don’t worry—it’s actually pretty straightforward and super useful.
What Are Loss Runs?
Think of loss runs like a report card for your business insurance. It’s basically a history of all the claims you’ve made against your insurance policies, showing when they were filed, how much was paid out, and if the claim is still open or closed.
Why does this matter? Well, insurance companies use this information to assess the risk. With multiple claims that might signal to an insurer that your business has higher risks—leading to higher premiums. On the flip side, a clean loss run report can help you get lower rates when it’s time to renew your policy or shop around for a new one.
Here’s what you can typically find in a loss run:
- Claim details: Dates, types of incidents, amounts paid out, etc.
- Policy periods: Timeframes of coverage when claims occurred.
- Status: Whether claims are still open or have been resolved.
Why Should You Care?
If you’re wondering, “Why should I care about loss runs?” Well, for one, it gives you a snapshot of how your business has been performing when it comes to insurance claims. But more importantly, loss runs are often required when you’re switching insurance carriers or renewing your policy. Insurers want to see your loss history to figure out how much of a risk you are. It’s like when a bank checks your credit report before giving you a loan.
For small business owners, especially in industries with higher risk like construction or food service, your loss runs could be the ticket to saving big bucks on your premiums. Less claims = less perceived risk = lower costs.
How Do You Get Your Loss Runs?
You can’t just walk into an insurance company and ask for loss runs like you’re picking up a coffee. It’s a formal process, but not complicated.
Here’s how you can get them:
- Contact Your Insurance Agent or Broker: This is the easiest way. Just reach out and ask for a copy of your loss run report. They should be able to pull it from the insurance company.
- Go Straight to the Insurance Carrier: If you want to go direct, call or email the insurer. They typically have up to 10 days (depending on the state you’re in) to get that report back to you. Some insurers even let you request it online.
- Request When Shopping for New Coverage: If you’re in the market for a new policy, you’ll definitely need this report. Start requesting it about 60 days before your renewal to give yourself plenty of time.
- Get It Yearly: Even if you’re not shopping for a new policy, it’s a good idea to request your loss runs once a year. That way, you can keep tabs on any claims that might still be open or spot mistakes that could be costing you more on premiums.
Pro Tip: Be Ready for Delays
Insurance companies have a legal obligation to provide your loss runs, but that doesn’t mean they’re always speedy about it. Some states require them to send it within a week or so, but it’s not unheard of to wait longer—especially if you’re trying to switch providers (a little insurance company cat-and-mouse game). Always ask early.
Real Stats: Why Loss Runs Matter for Premiums
Here’s a real-world example: businesses with zero claims in the past three years typically see a 20% lower premium compared to companies with multiple claims, according to industry data. That’s significant! If your business had a clean loss history, you could be shaving off a big chunk from your insurance bill.
According to the Small Business Administration, 40% of small businesses never reopen after a disaster. This makes managing claims wisely and keeping your loss runs clean crucial for not just lower premiums, but also long-term sustainability.
What Our Customers Say
At USA Business Insurance, we make it easy for small businesses to access their loss runs and get tailored coverage based on their needs. Here’s what some of our customers have to say:
- “I was nervous about switching insurance carriers, but with the help of USA Business Insurance, the process was smooth, and they helped me get my loss runs fast. I ended up saving 25% on my annual premium!” – Michael T., Construction Business Owner
- “Getting my loss runs was a breeze, and the team helped me understand how to use them to lower my rates. Highly recommend them!” – Sarah P., Restaurant Owner
Ready to lower your premiums and get the best coverage? Reach out to USA Business Insurance today, and let’s make it happen. You’ve worked hard to build your business—let us help you protect it.
