Loss Run Report
A report an insurer (current or prior) generates listing a policyholder's claims history over a set period, typically three to five years, dates, types of loss, and amounts paid or still reserved, used by underwriters to price new or renewal coverage.
Why it matters
A clean, well-documented loss run can lower a contractor's premium, while a missing one forces an underwriter to price the policy at a worst-case assumption since they have no other way to judge the real risk.
On a real project
A contractor switching insurance carriers requests loss run reports covering the past five years from their outgoing carrier, and the new underwriter uses that history, not just the contractor's own claim of a good safety record, to set the premium.
Who this matters most to
A Builder's Risk Underwriter and a Surety Bond Underwriter both pull loss run reports before pricing a policy or bond, since a contractor's actual claims history matters more than anything the contractor says about its own risk.
Where this goes wrong
A contractor switches carriers but never requests loss run reports from the outgoing insurer, and the new underwriter, unable to verify the claims history independently, prices the policy at a higher, worst-case premium rather than one reflecting the contractor's actual record.