Loss runs are one of the most important documents in a commercial insurance submission. They show a business's claims history — what happened, when it happened, how much was paid, and whether claims are still open. Underwriters use loss runs to price the risk and decide whether to offer coverage. Agents who know how to read and present loss runs can significantly improve their clients' placement success.
A standard loss run shows, for each claim:
• Date of loss • Date of report • Type of claim (liability, property, auto, WC) • Brief description of the incident • Amount paid (indemnity and expense) • Amount reserved (still open) • Total incurred (paid + reserved) • Whether the claim is open or closed
Loss runs are typically provided by current and prior carriers for the past 3 to 5 years.
Underwriters look at loss runs to answer:
• How frequent are the claims? (Frequency indicates systemic risk management issues) • How severe are the individual claims? (One large claim is different from many small claims) • Are there any open reserves that could develop further? • Do the claims indicate a pattern that suggests ongoing risk? • Is the loss history trending better or worse over time?
Every agent will eventually have to place an account with a challenging loss history. The key is to provide context that helps the underwriter understand what happened and why it won't happen again:
• Identify what caused the losses (one bad year, one large claim, a specific operation that has since changed) • Describe any risk management improvements made after the losses • Show the trend — if the most recent year has fewer or smaller claims, highlight that • Write a cover letter narrative that tells the story before the underwriter forms their own conclusions from the raw numbers
Loss runs must be requested from every carrier that has provided coverage in the past 3 to 5 years. Most states require carriers to provide loss runs within 10 to 30 days of a written request. The request should specify:
• The policy number and effective dates for each policy • The coverage type (GL, WC, auto, property) • That loss runs are needed for 5 years of history • Whether you need them with or without reserves shown
AgencyAssist collects all the information covered here through a plain-English client intake link. No phone calls, no PDF forms, no missing fields — just a complete, submission-ready ACORD package.