Loss run reports serve one essential purpose — providing insight into a business's prospective risks based on the business’s past insurance claims history. Business owners can use these reports to understand how insurers may perceive their risk levels. While claims history may impact initial coverage decisions and premiums, it can also affect whether an insurer renews its policies for a particular insured.

Room for Improvement

A loss run report can still be useful even if an insured had recent insurance claims. A loss run report contains valuable information that can benefit a business with recent claims history if it's used wisely. A loss run report may include information on claims resulting from incidents such as:

Workplace injuries
Automobile accidents
Business interruptions
Slip-and-fall accidents
Theft and vandalism
Fires

While insurance coverage is an important part of a business's risk management plan, steps should be taken to reduce risks at their source. A business owner can use their loss run report to analyze the claims and try to find ways to prevent similar losses in the future. Careful scrutiny may reveal issues such as gaps in employee training or a need to redesign work areas. Job workflows may need to be changed. Even return-to-work processes may offer potential areas of improvement.

Negotiating Power

A business’s loss run report may give the business owner some negotiating power. For example, the business owner may consider requesting lower premiums if there are no claims shown in loss run report. With documentation of a clean claims history, the business owner may be successful in their efforts.

While a business owner can try negotiating on their own, they may have better success if they work with an insurance broker. Knowing the business’s claims history does factor in as a strength, but a broker's expertise can help navigate potential coverage solutions and select one offering competitive prices, right level of coverage, and value.

Revealing Inaccuracies

Insurance claims reporting relies on accurate data. While most loss run reports accurately reflect claims history, some may contain incorrect information. Inaccurate claim information on a report can negatively contribute to a business's risk profile. It’s important to report and resolve such issues as soon as possible. Once the information is updated in, the loss run report reflects correct data about the business’s claims history.