Short answer
A loss run is a report from your insurer listing the claims on your policy: dates, what happened, what has been paid, and what is still reserved on open claims. A new insurer uses it to price your renewal, and some operators ask for it.
- Texas law backs your right to get one. Under Texas Insurance Code Section 542.102, a property and casualty insurer must give the policyholder, on written request, a list of claims charged against the policy and payments made on each claim. Section 2051.151 gives the same right for workers comp, including reserves. Both require a written response within 30 days.
- Ask for at least three to five years for every line: workers comp, general liability, auto, umbrella and pollution.
What is on a loss run
IRMI defines a loss run as "periodic reports of claim information provided by insurance companies to their insureds." Formats vary by insurer, but a useful loss run shows for each claim:
- the date of loss and a short description
- the claimant (for liability claims) or the injured employee (for comp)
- status: open or closed
- amounts paid so far, split into categories such as medical, indemnity and expense
- the reserve: the insurer's estimate of what is still to be paid on an open claim
- the total incurred, which is paid plus reserves
The reserve is the number to watch. IRMI describes a case reserve as an estimate of the amount for which a claim will ultimately be settled. An open claim with a large reserve looks like a large loss to anyone reading the report, even if it closes for much less.
What Texas law says about getting one
Texas has three relevant provisions, all with a 30-day response deadline.
| Section | Applies to | What the insurer must provide on written request |
|---|---|---|
| Ins. Code 542.102 | Property and casualty policies written in Texas (not workers comp, which is covered by 2051.151) | A list of claims charged against the policy and payments made on each claim |
| Ins. Code 542.101 | General liability, professional liability, commercial auto liability, and the liability part of commercial multiperil | Information on how a claim was disposed of: each claimant, amount paid, settlement or judgment, and how it is to be paid. The request must be sent within six months after the claim’s disposition. |
| Ins. Code 2051.151 | Workers compensation | A list of claims charged against the policy, payments made and reserves established on each claim, and a statement explaining the effect of claims on premium rates |
How to request them
Under Section 542.103 the insurer must respond in writing no later than the 30th day after it receives the request, and Section 2051.151 sets the same 30-day deadline for workers comp. Practical steps:
- Put it in writing. The statutes are triggered by a written request. An email or letter from the named insured to the insurer, or through your agent, is the usual route.
- Ask for every line and every year you need. List the policy numbers and policy periods. Ask for current valuation dates.
- Ask for the prior insurers too. If you changed insurers in the last five years, each one holds its own years.
- Check that it matches. Compare the workers comp loss run with your experience mod worksheet and your own records. A claim you never heard of, or a closed claim still carrying a reserve, is worth raising.
Insurers also have notice duties during a claim. Under Section 542.153, the insurer must notify the named insured in writing within 10 days of an initial offer to settle a liability claim against it, and within 30 days after the claim is settled. Section 2051.151 requires workers comp insurers to notify the policyholder of claims filed and of proposals to settle them, unless the policyholder waives notice.
How loss runs are used at renewal and in prequalification
An underwriter reading your loss runs is asking two questions: how often do you have claims, and how big do they get. A pattern of small auto claims or repeated back strains tells a story a single large loss does not.
Operators sometimes ask for loss runs during contractor approval, alongside your mod and TRIR. Whoever asks, the best practice is the same: have current loss runs ready before renewal season, with a one-paragraph explanation for any significant claim and what you changed afterward.
Common mistakes:
- Waiting until two weeks before renewal to ask. Build in the 30 days the statute allows.
- Sending only workers comp loss runs when the new insurer needs auto and GL too.
- Sending loss runs with old valuation dates. Many underwriters want them current within the last few months.
No claims? Get it in writing anyway
If you had no claims, the loss run will say so. A clean, current loss run from each insurer is still the document underwriters want to see.
Common questions
Can my insurer refuse to give me a loss run?
Texas Insurance Code Sections 542.102 and 2051.151 require insurers to provide claims information to the policyholder on written request, in writing, within 30 days. If you are not getting a response, put the request in writing and keep a copy.
Does a surplus lines policy count?
Section 542.102 applies to an insurer that writes property and casualty insurance in Texas. How it applies to a particular surplus lines policy is worth confirming. In practice, ask for the loss run through your agent either way.
Why does my loss run show a claim that was closed with no payment?
Many insurers list every reported claim, including those closed without payment. Ask that the report show the zero paid and zero reserve clearly.
How many years of loss runs do I need?
Underwriters commonly ask for three to five years. Ask your agent what the market you are going to wants.
Sources
- Texas Insurance Code, Chapter 542, Subchapters C and D. Sections 542.101 (liability claim disposition), 542.102 (list of claims and payments), 542.103 (30-day deadline), 542.153 (settlement notices).
- Texas Insurance Code, Chapter 2051. Section 2051.151: workers comp claims notices and list of claims, payments and reserves within 30 days of written request.
- IRMI glossary: Loss Run. Definition of a loss run.
- IRMI glossary: Loss Reserve. Loss and case reserves as estimates of unpaid claim value.
- IRMI glossary: Incurred Losses. Incurred equals paid claims plus reserves.
This page explains insurance, not law. Have your attorney review indemnity and contract language; our job is making the insurance match it.