How to Use Loss Run Reports to Improve Your Business and Cut Costs
If you own a trucking business, you’re likely focused on safety, compliance, and keeping costs down. But have you ever considered how your insurance claims history affects your premiums? Just like a credit score impacts loan approvals, your loss run report plays a critical role in determining your insurance rates and coverage options.
Whether you're renewing your policy or shopping for a better deal, understanding your loss run report can help you secure lower rates and improve your risk management strategy. Let’s break it down.
What Is a Loss Run Report?
A loss run report is a detailed record of your business’s insurance claims history. Insurance companies use it to assess how much risk they take on when insuring you. This report helps determine:
✅ Your eligibility for coverage – A clean history can help you qualify for better insurance rates.
✅ Your premium costs – Frequent or severe claims can lead to higher premiums.
✅ Risk assessment – Insurers use this data to identify patterns of risk in your business operations.
📌 Think of it like a credit report for insurance — your claims history directly affects your costs and policy options.
Why Loss Run Reports Are Important for Your Business
A good loss run report can be your best bargaining tool when negotiating insurance rates. Here’s why they matter:
🚛 Shopping for New Insurance – If you’re looking for a new policy, insurers will require loss runs to determine pricing and eligibility.
📉 Lowering Premiums – A clean report with few or no claims can help you negotiate lower insurance rates.
🔍 Identifying Risk Areas – Reviewing your claims history can help you pinpoint safety issues and improve workplace practices.
📑 Compliance & Transparency – Some clients or partners may request loss run reports before working with your business.
💡 Pro Tip: If your business has frequent claims, take action to reduce risks. Insurers may offer better rates if you implement safety measures and training programs.
What’s Included in a Loss Run Report?
If your business has never filed a claim, your report will simply state: "No losses reported." Otherwise, it will include:
✅ Business & Policy Details – Company name, insurer, policy number, policy term.
✅ Claims Summary – Dates of incidents, descriptions of accidents, and claim statuses.
✅ Financial Impact – Settlement amounts, legal fees, and reserve funds set aside for ongoing claims.
✅ Status of Claims – Whether each claim is open, closed, canceled, or record-only.
✅ Valuation Date – The date the report was generated (insurers prefer reports no older than 30-60 days).
📌 Providing loss run reports from the last 5 years is ideal when shopping for new insurance.
Types of Insurance That Require Loss Run Reports
Loss runs are used across multiple types of commercial insurance, including:
✔ Commercial Auto Insurance – Covers accidents and liability claims involving company trucks.
✔ General Liability Insurance – Covers bodily injury and property damage claims.
✔ Workers’ Compensation Insurance – Covers employee injuries and workplace accidents.
✔ Commercial Property Insurance – Covers damages to business-owned buildings or assets.
✔ Professional Liability (E&O) Insurance – Covers negligence or errors in service-based businesses.
📌 For trucking businesses, commercial auto and general liability loss run reports are the most important when securing coverage.
How Loss Runs Can Help Improve Your Business
Instead of viewing loss run reports as just a requirement, use them to enhance your operations:
✔ Identify Weaknesses – If you notice frequent claims related to driver errors, theft, or mechanical failures, take corrective action.
✔ Improve Safety Protocols – Invest in driver training, install dash cams, and implement fleet maintenance programs.
✔ Negotiate Better Rates – If you've improved safety and reduced claims, leverage your loss run report to get lower premiums.
📌 Proactive risk management doesn’t just save you money — it makes your business safer and more competitive.
Final Thoughts: Stay in Control of Your Insurance Costs
Your loss run report is more than just a claims record — it’s a valuable tool that can help you lower insurance costs and improve business operations. Whether you're renewing coverage or shopping for better rates, knowing how to interpret and use this report can give you a competitive edge.
At U Trust Insurance, we help trucking businesses secure the best coverage at the right price. Need help with your loss run report? Contact us today and get the protection your business deserves!
