Loss runs are one of the first documents underwriters review when evaluating an account. They shape how your business is perceived, how your risk is priced, and how much leverage you have at renewal. As January approaches, correcting errors in loss runs before renewals is one of the most impactful steps a business can take.
Even small inaccuracies can lead to higher premiums, reduced options, or unnecessary scrutiny.
Why Loss Runs Matter More Than You Think
Loss runs tell the story of your risk history. Underwriters rely on them to assess frequency, severity, trends, and overall risk quality. If the story is inaccurate, incomplete, or misleading, pricing decisions will reflect that.
Many businesses assume loss runs are automatically correct. In reality, errors are common and often go unnoticed until renewal pressure hits.
Common Loss Run Errors to Identify
Before January, loss runs should be reviewed line by line.
Open claims that should be closed are one of the most frequent issues. Claims left open due to administrative delays can inflate perceived risk even when no further exposure exists.
Incorrect reserves are another major problem. Reserves that no longer reflect actual exposure can materially impact underwriting decisions, especially for workers compensation and liability programs.
Misclassified claims, such as medical-only workers comp claims listed as lost-time claims, can distort experience modifiers and loss ratios.
Duplicate claims, incorrect dates, wrong locations, or inaccurate descriptions also appear more often than expected.
The Financial Impact of Inaccurate Loss Runs
Inaccurate loss runs don’t just affect underwriting perception — they affect real dollars.
Higher reserves increase loss ratios, which can lead to premium increases or reduced carrier appetite. Misclassified claims can inflate experience mods and trigger audit issues. Open claims can limit options in competitive markets.
Correcting these issues before renewal can directly improve pricing, terms, and carrier flexibility.
What Should Be Fixed Before January
The period before January is critical because underwriters are preparing renewal strategies and forecasting the year ahead.
Claims that are ready for closure should be pushed to resolution. Reserve reviews should be requested with supporting documentation. Claim classifications should be corrected to reflect actual outcomes. Notes should clearly explain large or unusual losses and the corrective actions taken.
The goal is not to hide losses, but to ensure they are accurately represented.
How to Approach Loss Run Corrections
Loss run corrections require coordination between your broker, carrier, adjusters, and internal stakeholders. Requests should be supported with documentation and framed clearly.
Waiting until renewal quotes are released is often too late. Proactive review gives underwriters time to reassess and adjust their assumptions.
This process also demonstrates strong risk management, which underwriters value as much as the numbers themselves.
Using Loss Runs as a Risk Management Tool
Beyond renewals, loss runs are powerful tools for identifying operational weaknesses. Patterns in injuries, locations, or claim types often reveal opportunities for training, policy changes, or safety improvements.
Businesses that actively manage loss data tend to see better long-term outcomes and stronger carrier relationships.
How Skyscraper Insurance Supports Loss Run Reviews
At Skyscraper Insurance, we treat loss run reviews as a strategic exercise, not a clerical task. We work with clients to identify inaccuracies, challenge unsupported reserves, and prepare clear explanations that underwriters can rely on.
Correcting loss runs before January puts you in control of the renewal conversation instead of reacting to it.
A proactive loss run review now can make a meaningful difference in how your risk is priced and perceived in the year ahead.
