Guide: general liability
General liability loss run submission: how to present the claims history
A general liability loss history goes into a submission as currently valued loss runs for each policy year, a one-page summary by year, and short notes on open and large claims. Show occurrence and claims-made years separately, and state whether incurred includes defense expense.
General information, not advice. This is not insurance, legal or financial advice. Requirements differ by carrier, state and market; follow the instructions of the market you are approaching.
What is specific to this line
Four things a general liability history has to show
- The policy form. Under an occurrence form a claim belongs to the year of the loss, even if it is reported later. Under claims-made it belongs to the year the claim was first made.
- The expense basis. Reports usually print allocated expense separately. For the loss history, what matters is that incurred is on the same basis for every carrier.
- The retention. Say whether amounts are gross or net of a deductible or self-insured retention.
- The tail. Claims can be reported long after the work is done, especially in contracting, so older years can still change.
Excess and umbrella layers have their own loss runs. Keep them apart from the primary history.
Steps
How to present the history, step by step
The summary is what gets read first. The loss runs behind it are what get checked.
- Collect every general liability reportGet currently valued loss runs from each primary carrier in the window, and from the excess or umbrella carriers if that layer is being marketed.
- Check each report before you buildLook at the valuation date, the years covered, the policy form and the printed totals.
- Build one scheduleUse the same columns for every carrier and policy year, and name the source report on each row.
- Summarize by policy yearShow claims, open claims, paid, expense, reserve, incurred and the largest claim for each year. The summary template gives the layout.
- Write the notesFor each open or large claim: what happened, where it stands, what happens next. A large loss summary keeps them on one page.
- Attach the loss runs and state the basisSay whether incurred includes defense expense and whether amounts are gross or net of a deductible or retention.
Checklist
What the loss history package contains
| Item | Why it is there | Source |
|---|---|---|
| Loss runs from each general liability carrier | The carriers' own record, currently valued | Carriers |
| Policy form and retroactive date, by year | Decides which year a claim sits in | Policies |
| Summary by policy year | A one-minute read of the whole history | Your schedule |
| Notes on open claims | Reserves can still move | Adjusters |
| Notes on large claims | They drive the result | Claim files |
| Basis statement | Defense expense in or out; gross or net of deductible | Loss runs, policies |
| Excess or umbrella history | A separate layer, shown separately | Excess carriers |
| Statements for years with no claims | Show that an empty year is empty | Carriers |
Pitfalls
What goes wrong
- Occurrence and claims-made years mixed. Claims land in different years under each, and a change of form can leave a claim in the wrong one.
- Expense on different bases. One carrier's incurred includes defense expense and another's does not.
- Excess history left out. A claim that exceeds the primary limit may also appear on the excess carrier's report, so a primary-only schedule can understate the history of that layer.
- Notes that argue the case. Statements about fault or coverage belong to the carrier and counsel. Keep to facts the file supports.
- A summary that does not tie. If its year totals differ from the loss runs, the underwriter will see it before you explain it.
The tool
How LossRun Pro helps
LossRun Pro maps a general liability report's columns by heading (loss paid, ALAE, reserve, incurred), assigns each claim to the policy period printed with it, ties each period to the carrier's printed total when the report has one and builds the policy-year summary. It keeps the carrier's coverage wording in its own column, but it has no field for occurrence or claims-made, so note the form yourself. Start on the loss run to Excel page. Free: 1 file per day, up to 10 pages, no account. Files over 10 pages are converted up to page 10 on the free allowance; a page code converts the whole file, up to 150 pages. See pricing.
FAQ
Questions about general liability loss history
How many years of general liability loss runs does a submission need?
Usually five policy years plus the current term, but follow the market's instructions. See five years of loss runs.
Should the submission show defense expense?
Show it in its own column and state whether incurred includes it. Markets differ on whether they measure loss alone or loss plus allocated expense.
How do I present claims-made years?
Label each year occurrence or claims-made, and give the retroactive date on claims-made years. Group claims by the year the loss run assigns them to.
Do I include umbrella or excess loss runs?
If the submission covers that layer, yes. Show them apart from the primary history, each with its own valuation date.
What about incident-only claims?
Ask the market whether it wants them counted. If you list them, show them apart from claims with payments or reserves, so the claim count means one thing.
Should I explain every claim?
Explain the large and open ones, and follow the market's instructions. Keep the notes factual. See open claims on a loss run.