Loss Run
Key Takeaway
A report from an insurance carrier detailing the insured's claims history, including all reported incidents, paid amounts, reserved amounts, and open claims. Loss runs are required by prospective carriers during the underwriting process and typically must cover the most recent five years.
Definition
A report from an insurance carrier detailing the insured's claims history, including all reported incidents, paid amounts, reserved amounts, and open claims. Loss runs are required by prospective carriers during the underwriting process and typically must cover the most recent five years. A clean loss run is one of the strongest factors in obtaining competitive premiums.
Why This Matters for Law Firms
Underwriting terms determine what you pay for coverage and what terms you receive. Law firms that understand the underwriting process can present their risk profile more effectively, negotiate better terms, and avoid surprises at renewal. This knowledge is particularly valuable when shopping for new coverage or responding to carrier questions.
Example Usage in Context
A firm preparing for its annual insurance renewal might encounter this in the carrier's proposal: "The underwriter has adjusted our loss run based on our claims history. Let's discuss with our broker whether we can improve this at our next renewal."
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