Insurance companies commonly request Loss Runs before quoting Commercial Auto.
Loss runs may show:
- Date of loss
- Type of accident
- Amount paid
- Amount reserved
- Open claims
- Closed claims
Carriers frequently request several years of prior loss history.
How Loss History Affects Commercial Auto Pricing
Insurance companies evaluate both:
Frequency
How often claims happen.
and
Severity
How expensive the claims are.
For example, a business with five smaller accidents may present a different underwriting concern from a business with no claims.
A business with one very serious liability loss may also receive additional underwriting review.
Loss history can affect:
- Premium
- Eligibility
- Driver requirements
- Deductibles
- Available carriers
- Required safety procedures