What Is a Loss Run? Everything You Need to Know

What Is a Loss Run?

A loss run — also called a loss history report or loss experience report — is a document issued by an insurance carrier that details a policyholder's claim history over a specific period, typically three to five years. It is produced by the carrier that wrote the policy, not by the insured or their agent, and it represents the carrier's official record of every claim filed, paid, and reserved under that policy.

Loss runs are one of the most important documents in the commercial insurance process. Underwriters at competing carriers use them to price new business. Brokers use them to negotiate renewals. Risk managers use them to identify patterns and justify loss control investments. Without accurate, current loss runs, most commercial accounts cannot be properly quoted.

What Information Does a Loss Run Contain?

The level of detail varies by carrier, but a standard commercial loss run includes:

• Policy information: Policy number, named insured, coverage line, and policy effective dates.
• Claim details: Individual claim numbers, dates of loss, brief claim descriptions, and the claimant's name (where not restricted by privacy regulations).
• Financial data: Total amounts paid to date, amounts currently held in reserve for open claims, and total incurred (paid plus reserved).
• Claim status: Whether each claim is open (still being adjusted) or closed (fully resolved and paid).
• Summary statistics: Total claim count, total incurred losses by policy year, and sometimes loss ratios and frequency metrics.

Workers compensation loss runs tend to be the most detailed — individual claims can include injury type, body part, and indemnity versus medical breakdowns. General liability and property loss runs are typically less granular but still include all open reserves, which are critical to accurate pricing.

As of 2024, the NAIC's model regulation on claims data does not mandate a standard loss run format, which is why carrier formats vary significantly. Some carriers produce three-page PDF summaries; others generate 50-page spreadsheets for large accounts. The substance is consistent even when the presentation is not.

Why Are Loss Runs Important for Insurance Agencies?

Loss runs serve four distinct purposes depending on where an account stands in its lifecycle.

• Accurate quoting. Competing markets will not quote a commercial account without loss history. Loss runs let underwriters model expected future losses based on actual past experience rather than relying on industry class averages.
• Risk assessment. A series of loss runs across multiple years reveals frequency and severity trends that inform whether an account is improving or deteriorating. An account with three similar GL claims in two years raises different concerns than an account with one large, anomalous claim.
• Carrier negotiations. During renewal marketing, detailed loss run analysis gives the broker leverage. Demonstrating that large reserves are overstated, or that the claim causing a rate increase is closed and non-recurring, can materially affect the renewal offer.
• Compliance and documentation. Some state surplus lines regulations and E&O best practices require that loss runs be collected and retained as part of the submission file. Agencies without them face exposure if a placement is later contested.

Who Can Request a Loss Run?

Three parties are permitted to request loss runs from a carrier: the named insured directly, their authorized agent or broker, and the carrier itself (for internal purposes). Third parties — including competing agents — may only receive loss runs with the insured's written authorization.

This is why authorization letters exist. When a prospect is shopping their insurance with a new agent, the incumbent carrier will not release claims history to that agent without documentation showing the insured has consented. The authorization requirement protects the insured's privacy and gives them control over who accesses their claims data.

Agents who are already the broker of record can typically request loss runs without separate authorization, since the broker-of-record letter already establishes the agency relationship.

Loss Runs vs. CLUE Reports: What Is the Difference?

These two documents are frequently confused but serve entirely different purposes. A CLUE (Comprehensive Loss Underwriting Exchange) report is a consumer-facing claims history compiled by LexisNexis from data reported by member carriers. CLUE reports cover personal lines insurance — primarily auto and homeowners — and are governed by the Fair Credit Reporting Act (FCRA), which gives consumers the right to dispute inaccurate information.

Loss runs, by contrast, are carrier-specific documents produced directly from the carrier's own claim system for a single account. They cover all lines of business, including commercial lines that do not appear in CLUE. Loss runs are the authoritative record for commercial insurance underwriting; CLUE reports are a supplementary tool for personal lines.

For commercial accounts, CLUE is largely irrelevant. Underwriters want carrier-issued loss runs, not aggregated database reports.