The renewal file can look finished until a carrier report arrives with an unfamiliar claim description, an open reserve or the wrong location—and the quote stalls.
A loss run is not just another attachment. It is the insurer’s version of the restaurant’s claim history. Read it before the next underwriter does.
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Quick Answer: What Are Restaurant Loss Runs?
Restaurant loss runs are reports produced by prior insurance carriers that summarize claims connected to the restaurant’s policies. A report may show the policy period, date of loss, claim description, open or closed status, paid amount, outstanding reserve and total incurred amount.
For a renewal or new quote, request currently valued loss runs for every carrier, policy year and coverage line the underwriter asks for. Check the legal name, locations, dates and figures before sending the reports. If something appears wrong, ask the carrier to review or correct it; do not edit the report yourself.
Restaurant Loss Runs at a Glance
Report Field | What to Check | Why It Matters |
|---|---|---|
Named insured | Legal entity and DBA are correct | A mismatch can make the history look incomplete |
Policy period | Every requested year is included | Missing years can delay quoting |
Location | Loss belongs to the correct restaurant | Essential for multi-location groups |
Claim status | Open, closed or reopened | Open files usually receive closer review |
Paid amount | Payments recorded to date | Shows financial activity already posted |
Reserve | Amount set aside for an unresolved claim | Can make incurred loss much higher than paid loss |
Total incurred | Paid amount plus applicable reserve | Often used in underwriting analysis |
Valuation date | Report is recent | An old report may show outdated figures or status |
Formats differ by insurer and coverage line.
What a Loss Run Usually Shows
A loss run is a summary, not the entire claim file. It commonly identifies the insured, policy term, loss date, description, claim number, status, payments and reserves.
It may not explain what happened after the incident. The report might say “customer fall” without noting that the restaurant replaced a leaking beverage line, changed the floor mat and added documented manager checks. It might show a kitchen fire without mentioning completed hood work or suppression-system service.
Put missing context in a separate, factual claim explanation.
How to Request Currently Valued Loss Runs
Ask early enough to fix problems. StarNet’s restaurant insurance renewal checklist places the loss-run request near the beginning of the 60–90-day process, not the week before expiration.
Send a written request with the legal name and DBA, policy numbers, locations, coverage lines, requested policy periods, current valuation date and delivery deadline.
A simple request can say:
Please provide currently valued loss runs for all requested coverage lines issued to [legal entity and DBA], including [locations], for policy periods [dates]. Please include the current term and confirm any period with no reported losses.
If coverage moved during the requested period, request reports from every carrier. A workers’ compensation insurer will not supply property history held elsewhere.
Rules vary by state. California, for example, addresses commercial loss-information requests in Insurance Code Section 679.7. That does not create a nationwide deadline; check the rule that applies to the policy.
Review the Reports Before Sending Them
Open every report. “Attached are the loss runs” should not be the first time the restaurant sees what they contain.
Start with identity. Does the named insured match the application? Are all locations shown? Is a closed unit still mixed into the current operation? Then arrange reports by policy period and carrier so gaps and overlapping dates are visible.
Compare each claim with incident reports, repair invoices and correspondence. Look for a wrong location, an outdated status, another insured’s loss, unexplained changes in paid or reserve amounts and missing policy years. Entries under different coverage lines may relate to one event, so investigate before calling them duplicates.
The StarNet restaurant insurance quote checklist covers the broader submission. The loss-run review has a narrower job: make sure the official claims history is complete, current and attached to the right account.
Read Paid, Reserve and Total Incurred Correctly
These numbers are related, but they are not interchangeable.
If a claim shows $8,000 paid and a $12,000 reserve, the report may show $20,000 total incurred. The $12,000 has not necessarily been paid. It is an amount the carrier has set aside for a possible remaining obligation, and it may change as the claim develops.
A large open reserve can draw attention because the final cost is uncertain. Repeated small claims may create a frequency concern.
Do not describe a reserve as money the restaurant is owed, a final settlement estimate or proof that the claim will reach that amount. Ask the claim representative about status when the information appears stale.
Write a Useful Claim Explanation
For each material claim, state the date, location and event; the alleged injury or damage; the immediate response; completed corrective action; and the carrier’s current status.
Avoid legal conclusions, blame and vague assurances such as “this can never happen again.” “Supply line replaced on May 8; weekly documented checks began May 15” is more useful than “the plumbing issue was handled.”
For customer incidents, StarNet’s general liability claims guide explains why photographs, witness information and inspection records matter.
Handle Open Claims and Incorrect Entries
For an open claim, confirm the valuation date and ask whether the carrier needs documents. The restaurant may request a status review, but it cannot order a file closed or a reserve reduced to improve a quote.
If an entry appears wrong, send a written question with supporting records. Ask the carrier to issue the corrected report or written clarification. Never alter a PDF, spreadsheet or claim description and present it as a carrier document.
When claims share a cause, explain the pattern and response. Three falls at one doorway tell a different story from unrelated incidents at three locations.
Special Situations That Need More Detail
Multiple locations: Separate claims by premises so one unit’s frequency is visible.
Entity change: Explain the transaction and management continuity. A new LLC does not erase prior experience.
No prior insurance: A new restaurant may need a no-loss statement, owner experience and projections.
One event under several policies: Identify related property, liability or workers’ compensation entries without assuming duplication.
Non-renewal: Request reports immediately. StarNet’s restaurant insurance non-renewal guide covers the separate replacement process.
Restaurant Loss Run FAQs
How many years of restaurant loss runs do insurers request?
It varies by carrier and coverage line. Follow the underwriter’s request rather than assuming one period applies to every quote.
What does “currently valued” mean?
It means the report reflects claim status, payments and reserves as of a recent valuation date.
Is a loss run the same as a CLUE report?
No. Commercial carriers issue loss runs for business policies. CLUE is a separate claims-history product commonly associated with personal insurance.
Can a restaurant correct its own loss run?
No. The restaurant can document an apparent error and ask the carrier to review it. Any revised carrier report should come from the carrier or its authorized representative.
Will one large claim prevent a restaurant from getting insurance?
Not automatically. Insurers may consider cause, severity, current status, claim frequency, operational changes and available markets.
Contact StarNet Insurance Group
Loss runs are most useful when they are complete, current and paired with a plain account of what changed after a loss.
Coverage, underwriting requirements, claim records and state rules vary by carrier, policy and jurisdiction. This article provides general educational information and is not legal, accounting or coverage advice.
Contact StarNet Insurance Group for help requesting restaurant loss runs, checking claim information and preparing a renewal or quote submission.
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