EXECUTIVE SUMMARY
Insurance carrier loss-run statements frequently contain clerical errors, open reserves for closed claims, and miscalculated experience mods. Forensic loss-run scrubbing reduces baseline commercial policy premiums by 12% to 22%.
A loss-run report is the primary data source underwriters use to price a commercial policy. If that report contains errors — claims still showing open reserves after they have been settled, duplicated entries, or miscalculated experience modifications — the carrier's quote is built on inflated loss history.
Open reserves for closed claims are especially damaging. A reserve that should have been closed remains on the report as an outstanding liability, signaling higher risk than actually exists. The inflated experience mod that results flows directly into the premium, year after year, unless someone corrects the underlying data.
Because loss-run statements are often accepted as authoritative, these errors go unnoticed — quietly raising baseline premiums by 12% to 22%.
Correcting loss-run errors requires a documented dispute process that compels carriers to act. Without a formal protocol, requests to fix claim data can be deprioritized or ignored, leaving inflated premiums in place.
Pull complete loss-run statements and systematically flag closed claims with open reserves, duplicates, and mod errors.
Document each identified discrepancy with supporting settlement or payment records to substantiate the correction demand.
Leverage the carrier's internal dispute path and, where needed, state insurance regulatory resources to compel a response.
Once corrected, submit the scrubbed history to multiple carriers to secure quotes based on accurate risk data.