Buying Insurance is among the most hated tasks faced by people in the towing and recovery business; hated because it is expensive and not very well understood. Many tow truck operators look forward to renewing insurance policies with the same enthusiasm as doing their taxes.

It can be made easier and less expensive! A little know computer form called a “Loss Run” can save you money if your claims experience has been favorable. Insurance companies want to know if insuring your business is likely to be profitable. They also want to know if they should actively “compete” for your business by giving extra “credits” to try to get you to choose their policy. Loss runs are computer-generated reports that you request from your insurance company. They detail the following;

1. Losses you sustained during the policy year covered by the loss run.
2. Details on how much the company paid out on each loss.
3. How much the company has “reserved” to be paid out on a claim for which you may have a liability or the insurance company may be liable to you for a payment, such as a collision loss to your own truck.

Insurance companies value this loss information very highly. Most companies usually ask for three or four years of loss runs. This information tells the underwriter what kind of risk you are. If you have good loss experience, the loss run will speak for you in getting the lowest possible quote. On the other hand, if the loss run shows a lot of claims activity, you may not get a deal from another insurance company.

How do I get loss runs?
Call the agent who sold your current policy. You may have different policies for your garage keepers, vehicles and garage liability coverages. Make sure you have all your policy numbers. Give the agent all the numbers and tell him you want loss runs for the appropriate year of each policy. Keep you insurance policies for at least five years after the year they were effective.

How long does it take?
If you have the policy numbers and the name of each insurance company, your agent should be able to get loss runs in a matter of days. Most insurance companies can fax the loss runs to your agent within hours of receiving the request. Four business days is plenty of time for them to be faxed to you.

What if I have trouble getting the loss runs?
You may very well get stalled by your agent. Let’s face it…He knows why you are calling and he will probably suspect you are shopping your insurance for a better price. Most agents are professional and ethical and will respond to your request quickly. Some may not! You may then go straight to the insurance company and request that they be sent to you directly.

Always take good notes when calling for loss runs. Write down the date and time and the name of the person you talk to. Most state insurance departments have strong rules requiring insureds to be provided the loss information quickly. If you have to file a complaint with the insurance department, you need to have dates, names and times when you requested the information. If the agent or insurance company appears to be stalling, then you may inform them that you expect the information quickly or you will ask the insurance department for help

Start today. Get your loss runs and keep them on file. Make sure about 45 days before your policy renews each year that you have these loss runs on hand and in your office. They can help you save money on insurance and help you spot accident-prone drivers and unsafe practices.