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In the insurance industry, many individuals refer to loss runs as a credit score equivalent. Before issuing commercial insurance, some companies look over your loss history. In various instances, it could lead to higher premiums or declined service altogether. However, this will vary from provider to provider. Continue reading to learn more about loss runs regarding commercial insurance.
Gaining Information
The type of information shared in these reports will cover a variety of details, and it will vary from provider to provider. Regardless, most companies examine the number of policy claims your business has along with the valuation dates, the status of open or closed claims, the date when each loss occurred, and the amount paid to date or held in reserve.
An insurance company will generally require up to five years of claim history. However, this can vary. To learn what information is in the loss run and how many years can be accessed, speak directly with the provider.
Assessing Risks
An insurance company will want to know how much of a risk your establishment poses before providing coverage, regardless of the policy type. If your business has experienced large losses or made expensive claims, you could seem riskier than a company with opposite loss runs.
When no claims have been filed, your company’s report should state no loss record. It’s important to verify this, as mistakes are possible, making a loss run very beneficial. With current incident trends and hacking issues, the reports will help you better safeguard your business against theft and inaccuracies.
Defending Your Business
Each industry is different, and some are more hazardous than others. However, lenders, insurers, and other providers of commercial services don’t always consider these factors. With loss runs, you can analyze these challenges and setbacks, providing more insight that could allow providers and lenders to see how your business will mitigate the issues in the future.
As a business owner, you can use the loss runs to correct different measures, allowing your establishment to avoid these mishaps in the future. Therefore, a loss run isn’t just beneficial for premium coverage offers. It can also increase the longevity of your company.
Requesting a Loss Run
Loss runs are a common aspect of the commercial insurance world. This means you should never hesitate to ask for a copy, whether you want to leave your current insurance provider, negotiate lower premium rates, or simply verify the listings on the report.
There are steps you need to take when requesting the loss run, especially if you have multiple accounts with the provider. Always ask for the specific insurance policy you would like to access. List the years you want to review and how soon you need the report back. The state of California typically requires a loss run to be provided within ten days of the request, but this can vary.
Business owners need commercial insurance because operating a business means assuming certain kinds of risk, and the type of commercial insurance needed will vary. For affordable, reliable commercial insurance as well as homeowners, renters, motorcycle, and auto insurance, call on the trustworthy professionals at Altra Insurance Services. Reach out to us today to learn how we can satisfy all your insurance needs.