What Are Professional Liability Insurance Loss Runs?
Professional liability insurance underwriters request insurance loss runs based on provided application information. Loss runs show the firm’s claims history helping underwriters determine whether to offer and price coverage.
What Is a Professional Liability Insurance Loss Run?
Loss run report(s) detail claims the firm’s claim history including past and current claims, payments made by the insurer, and any open reserves set aside.
What Information Is Included?
Professional liability loss runs typically include:
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- Policy information
- Claim dates
- Claim descriptions
- Open or closed claim status
- Amounts paid on claims
- Outstanding reserves on open claims
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Factors causing an underwriter to request loss runs:
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- Reported claims history
- Reported disciplinary matters
- Certain practice areas or client types
- Requests for high liability limits or additional coverage enhancements
- Insurance history specifically prior insurer non-renewal or coverage recession
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Professional liability insurers rely on loss runs to:
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- Evaluate risk exposure
- Determine eligibility for coverage
- Price premiums appropriately
- Identify claim trends
- Review open claims and reserve amounts
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A clean loss history helps secure better coverage options and more competitive premiums. Conversely, multiple claims lead to higher rates, additional underwriting requirements, or coverage declination.
How Do You Obtain a Loss Run?
Request loss runs report directly from your incumbent insurer or insurance broker. Insurers provide loss runs upon written request.
Why You Should Review Your Loss Runs
Before submitting loss runs to a prospective insurer, review them for accuracy. Open claims and reserve amounts significantly influence underwriting decisions. Understanding your claims history allows you to address potential concerns proactively and present the strongest possible application. Professional liability insurance loss runs serve as an important underwriting tool. A clean claims history improves your chances of obtaining favorable coverage terms and competitive premium rates.
Contact Me Today
Lee Norcross, MBA, CPCU
California License # 0D87292
L Squared Insurance Agency, LLC ® DBA in California as L2 L Squared Insurance Agency, License # 0L93416
Managing Director, CEO
Lee@L2Ins.com
616-726-7080
