Why PEOs Request Loss Runs
The Single Most Important Document in PEO Underwriting
Loss runs are the record of every workers comp claim your business has had over the past three to five years. Every PEO asks for them because they are the single most important document in underwriting. Your loss runs reveal your actual claims experience, which drives your workers comp pricing more than any other factor. Understanding what loss runs show and how to get them gives you a head start on better pricing.
Years of loss runs PEOs request
Document in workers comp underwriting
From your current workers comp carrier
Typical time to get loss runs
Key Underwriting Factors
Claim Frequency
How often you have claims. Frequent small claims raise your risk profile more than one large claim because frequency predicts future losses.
Claim Severity
The total cost of each claim. Severe claims with large payouts push your risk profile and your pricing up.
Open Versus Closed
Open claims with reserves still outstanding signal future cost. Closed claims with final costs are weighted differently.
Claims Trend
Is your loss history improving or worsening? A downward trend earns better pricing than a flat or upward trend.
Reserve Adequacy
The underwriter checks whether reserves on open claims are adequate. Under-reserved claims may grow and signal more risk.
Class Code Accuracy
Loss runs confirm your claims are assigned to the right class codes. Misclassified claims can distort your risk profile.
What Loss Runs Actually Are
Loss runs are a report from your current workers comp carrier that lists every claim your business has filed over a specified period, usually three to five years. For each claim, the report shows the date, the type of injury, the amount paid, the amount reserved, and whether the claim is open or closed. The PEO underwriter uses this report to build your risk profile and set your workers comp pricing.
- Loss runs are a report from your current workers comp carrier
- They list every claim over the past three to five years
- Each claim shows date, type, paid amount, and reserved amount
- Open versus closed status is shown for each claim
- The underwriter uses them to build your risk profile
- They are the single most important document in underwriting
Why Every PEO Asks for Loss Runs
Workers comp pricing is based on your actual claims experience, not just your industry average. Loss runs are the only document that shows your actual experience. Without them, the underwriter can only price you on industry averages, which means you pay for the average risk in your industry even if your claims are better. With loss runs, the underwriter can price you based on your real history, which can save you significantly if your claims are better than average.
How to Get Your Loss Runs Before You Apply
Request loss runs from your current workers comp carrier. Most carriers provide them free within two weeks. Ask for three to five years of history in a valued format, which shows paid and reserved amounts. If your carrier is slow, a broker can often expedite the request. Having your loss runs in hand before you apply to a PEO can cut your underwriting time in half and ensure your pricing reflects your actual claims experience.
Loss Runs FAQ
What are loss runs?
Why do PEOs request loss runs?
How do I get my loss runs?
How many years of loss runs does a PEO need?
PEO Underwriting Guides
What Is PEO Underwriting?
What PEO underwriting is and why it decides your pricing.
How a PEO Evaluates a Company
The criteria PEOs use to evaluate your business before quoting.
What Affects PEO Pricing
The factors that drive your PEO pricing up or down.
Why PEO Quotes Vary
Why different PEOs quote different prices for the same company.
Why Did My PEO Decline My Company?
Common reasons PEOs decline businesses and what to do next.
High-Risk PEO Underwriting
How high-risk businesses get underwritten by a PEO.
PEO Workers' Comp Underwriting
How PEOs underwrite workers' compensation risk and pricing.
PEO Benefits Underwriting
How PEOs underwrite health and benefits risk for your group.
PEO Financial Underwriting
How PEOs assess your financial health before quoting.
Experience Modification and PEO Pricing
How your EMOD factor affects your PEO workers comp pricing.
What Financial Info a PEO Requires
The financial documents a PEO needs to underwrite your business.
How to Prepare for PEO Underwriting
How to prepare your business for a PEO underwriting review.