According to Moody Insurance Worldwide, a loss run report is a detailed history of claims made on each insurance policy. New insurance buyers must submit a run loss report to their prospective insurance company even if they have no prior claims. These reports are free and made readily available by all insurance companies.
According to Zeiler Insurance, a standard run loss report includes the name of the insured person, the policy number, each claim date, the amount of money paid by the previous insurance company and a brief description of the claim. Most loss runs list claims from the past five years of coverage or, if the insurance policy is younger than five years, the losses collected over the entire period of coverage.
The amount and nature of claims listed on a loss run report greatly affects the outcome of an application for insurance coverage through a new company as well as the policy premium. Moody Insurance Worldwide describes run loss reports as necessary information for insurance companies to have when it comes to insuring a new customer. Without a loss run report, insurance companies are unable to rule out the possibility of a high-risk applicant with a history of frivolous claims.