An insurance loss run report shows an association's claims history. It contains the following information:
- the policy number and the association’s name
- the dates of claims were reported to the carrier
- a description of the claim
- the financial impact of the claim (how much the carrier paid to settle claims)
Effect on Premiums. Carriers use loss run reports to evaluate how much to charge an association based on the risk it will file additional claims. Associations also use the report when shopping for new insurance. Boards can obtain a copy by asking the association's insurance broker for one.
High Risk Associations. Associations that lose their insurance due to a high number of claims can still get insurance through "excess and surplus lines" carriers. However, coverage will be limited, deductibles high, and premiums significant. Moreover, the carrier may exclude known problems, such as actions filed by recognized litigious owners. Carriers that write "hard to place" accounts often use non-admitted carriers.
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