How to Correct Errors in Your 5-Year Loss Run

Navigating the complexities of insurance can be daunting, especially when dealing with a 5-Year Loss Run. This document is a critical tool for businesses, providing a detailed history of claims over half a decade. Errors in this report can lead to inflated premiums, coverage denials, or even legal complications. In today’s volatile economic climate—marked by rising inflation, supply chain disruptions, and increasing cyber threats—ensuring the accuracy of your loss run is more important than ever.

Why a 5-Year Loss Run Matters

A 5-Year Loss Run is essentially your insurance resume. Underwriters use it to assess risk, determine premiums, and decide whether to offer coverage. Inaccuracies can paint an inaccurate picture of your business’s risk profile, leading to:

• Higher premiums – Incorrectly reported claims can make your business appear riskier than it is.
• Coverage gaps – Missing or misclassified claims may leave you exposed to future liabilities.
• Reputation damage – Errors can raise red flags with insurers and partners.

Given today’s insurance market—where carriers are tightening underwriting standards due to climate change, geopolitical instability, and economic uncertainty—correcting errors in your loss run is non-negotiable.

Common Errors in a 5-Year Loss Run

Before fixing mistakes, you need to identify them. Here are the most frequent issues:

1. Incorrect Claim Amounts

Sometimes, insurers report inflated or outdated claim values. A $10,000 claim might mistakenly appear as $100,000, drastically altering your risk assessment.

2. Duplicate Claims

The same claim might be listed multiple times due to clerical errors, making your loss history appear worse than it is.

3. Misclassified Claims

A slip-and-fall accident might be wrongly labeled as a workers’ comp claim, skewing your data.

4. Missing Claims

If a claim was settled but never reported, your loss run may not reflect your actual risk exposure.

5. Outdated Information

Claims that were closed or reduced in settlement might still appear as open or at their initial value.

Step-by-Step Guide to Correcting Errors

Step 1: Request a Copy of Your Loss Run

Contact your insurer or broker to obtain the most recent version. Some carriers provide digital access via portals, while others require formal requests.

Step 2: Review Line by Line

Compare the loss run against your internal records. Pay attention to:
- Claim numbers – Ensure they match your documentation.
- Dates – Verify open/close dates are accurate.
- Payments – Check if settled amounts align with final payouts.

Step 3: Gather Supporting Documents

If you spot discrepancies, collect:
- Claim adjuster reports
- Settlement agreements
- Emails or correspondence with insurers

Step 4: Dispute Errors with Your Insurer

Submit a formal dispute letter outlining:
- The specific errors
- Corrected information
- Supporting evidence

Follow up persistently—insurers may take weeks (or months) to process corrections.

Step 5: Escalate if Necessary

If the insurer doesn’t cooperate, consider:
- Involving your broker – They can leverage relationships to expedite corrections.
- Filing a complaint – State insurance departments can intervene in disputes.

The Role of Technology in Loss Run Accuracy

With AI and automation transforming insurance, some carriers now offer real-time loss run dashboards. These tools reduce human error and provide instant updates. If your insurer still relies on manual processes, consider advocating for modernization—especially as cyber risks and ESG (Environmental, Social, and Governance) factors complicate risk assessments.

Proactive Measures to Prevent Future Errors

1. Maintain Organized Records

Use cloud-based systems to track claims, settlements, and communications.

2. Conduct Annual Audits

Review your loss run at least once a year—don’t wait until renewal season.

3. Work with a Knowledgeable Broker

A skilled broker can spot red flags and negotiate corrections on your behalf.

4. Leverage Predictive Analytics

Some platforms now use AI to flag anomalies in loss runs before they cause problems.

The Bigger Picture: Loss Runs in a Changing World

From climate-related claims (wildfires, floods) to cyber incidents (ransomware, data breaches), today’s risks are evolving rapidly. An accurate loss run isn’t just about fixing mistakes—it’s about ensuring your business is positioned for resilience in an unpredictable world.

By taking control of your 5-Year Loss Run, you’re not just correcting errors—you’re safeguarding your future.