What Are Loss Runs?
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Why do you need loss runs? Does your claims history really matter? You’ve got questions, and we’ve got answers.
What are Loss Runs?
Loss runs are official reports from your previous insurance company/ companies that provide your claims history. Many underwriters ask for three to five years of loss runs when providing a small business quote.
It’s true that you may or may not need to provide loss runs to receive a quote. It depends on the risk that your insurance company is trying to quote. But even if the underwriter isn’t asking for your loss runs upfront, they may still ask for them later on. Being able to provide your loss runs from the beginning allows you to get a better quote, faster.
Obtaining Your Loss Runs
To obtain your loss runs, you’ll need to go back to your current or previous insurance agents and ask for them. This process usually takes 1-3 business days, and you’ll receive them in a PDF.
It’s difficult to avoid returning to your current or past agent, especially in Florida, because policies are written through the Managing General Agency, not the insurance company.
Bear in mind that asking your agent for your loss runs signals to them that you’re looking to get a quote from another agency. A reputable agent should easily release a loss run to you. Just remember that your peace of mind is worth more!
Benefits of Providing Loss Runs
Complete submission, or when an agent can provide all information to the underwriter, is going to get you a quote faster. This allows the underwriter to be as accurate as possible when providing you with a quote.
The quickest, most-accurate insurance pricing always comes from providing loss runs.
It’s important to recognize that whether or not you’ve had any losses affects your eligibility more than your pricing. However, lower-priced insurance agencies may not work with you because they’re unwilling to take the risk. Insurance companies are an extension of your business, and exist to manage risk.
But even if your loss runs show that you’ve had claims, it’s not the end of the story for you. Discuss what occurred during the loss with your agent. Providing additional context to the underwriter will help them decide if you fit their eligibility requirements. If you can prove that you reacted to the claim appropriately and you’ve worked to prevent the loss from happening again, you’ll become more appealing to the insurance company.
Not all insurance is created equal. Talk to your trusted insurance advisor about your specific situation. Feel free to reach out to us here with any questions you may have.