Any insurance policy requires a fair amount of data, reports, and other requirements to meet the compliance norms. The legal industry and malpractice insurance segment are no different. Loss run reports, which include a policy’s detailed information, are essential for several reasons. However, getting the latest loss run report can be nothing less than a daunting task. In this article, we take a look at the reasons why loss run reports are important in legal malpractice insurance. We additionally explore how relying on insurance loss run processing services from an outsourcing partner can help you get these reports.
Current Industry Practices in Legal Malpractice Insurance
Insurers usually require loss run reports to generate a quote. It is the standard practice across regular commercial insurance policies. Standard loss run reports have all the claims-related information of the period in which the insurer got the insurance coverage. When we talk of malpractice insurance, specifically, the loss run reports include details beyond actual claims paid. There will also be a record of incidents that will usually not lead to a claim or punitive action. Not every firm will go in-depth to extract and report this information.
How Malpractice Policies are Different and where Insurance Firms are Lagging
Most insurance firms fail to protect their interests by not reporting incidents till the time they become claims at a later stage. It is where legal malpractice insurance is different from regular insurance like property. Even if firms report such incidents, the gap between the reporting and filing of the claim can be of several years.
It is also essential to understand that malpractice policies are nothing but claims-made coverage. So, what this means is the insurer will have to go for the claim irrespective of when it gets reported. Furthermore, it does not matter if the firm in question is now availing the services of a new carrier. As soon as the incident gets reported, the claim gets considered. The insurer will additionally deny the coverage when a firm wants to report a claim, which they were aware of before the existing policy came into effect.
There are several elements in a loss run report, and each insurer will have a different set of information which they add to the report. Now, your team will be in trouble if they do not find the relevant information that they need in a loss run report. This is where reliable insurance loss run processing services from a third-party partner can be of great assistance. They collate the loss run reports from multiple sources and make them available to you within no time.
Why Loss Run Reports are Important for Legal Malpractice Insurance
Loss run reports can come in handy for an underwriter to understand the insurance policy well and decide on appropriate coverage and pricing. Here are some reasons why they are essential for legal malpractice insurance.
- To get an idea of the disciplinary matters pertaining to the application
- Access claims details from other insurers
- To identify coverage gaps and their reasons
- To check whether the premium amount matches the usual standards
Besides the reasons listed above, the insurance company would also want to identify the risks associated with the insured. It will also give the insured insights into potential hazards that could affect them in the long run. Accordingly, they can come up with measures to mitigate them.
How a Reliable Service Provider can help with Loss Run Reports for Legal Malpractice Insurance
If you are on your own as an insurance agency, you can face several challenges. There is every possibility of errors as loss run reports are quite complex. Furthermore, there can be many delays in obtaining these reports on time. The best way to overcome these challenges is by choosing a reliable outsourcing partner. Here are some benefits of outsourcing insurance loss run processing services.
- Expert support
When you opt for expert professionals, they bring in their years of experience. They handle the paperwork with professionalism and ensure there are no delays. The loss run reports they obtain from multiple sources can help you with all the information you need. You can get a seamless experience working with them as they have in-depth knowledge about the process.
- Operating costs
Loss run reports can consume a lot of your resources. A major portion of your resources will be consumed just to make multiple requests. You will have to assign dedicated resources each time you make a request. Furthermore, if you have multiple policies, you will have to repeat the process each time. It can result in resource shortage, thereby necessitating the need to invest more on recruiting more resources to get the job done. This will be a significant addition to operational overheads. Your insurance loss run processing services provider will keep delegate optimized resources who are necessary to handle the tasks without any extra expense.
- Multiple requests
To get one single loss run report, you will have to make multiple requests. It can be quite labour-intensive when you do repeated follow-ups. So, getting domain specialists to procure these reports can be a suitable option.
- Response time
Loss run processing can take a lot of time, even if you are through with the initial stage. Besides multiple requests and follow-ups, there can also be complexities beyond the first stage. You will have to contact the insurance company often to make sure they are working on your file. Since they also have limited staff at their end, getting information from them can be harrowing. Insurance loss run processing service providers follow a check-list based approach that makes it easier for them to do multiple follow-ups in a time-optimized way.
- Quality control
Each insurance company can have varied requirements. Only industry experts know about the processes and needs of each insurance carrier. So, getting the help of someone who understands all of this can help you immensely. There are possibilities of errors when you file these reports. It can further lead to delays when you submit reports with errors. Experts can help you ensure there are no errors at the time of submission.
Who we Are and What Makes Us an Authority?
Insurance Back Office Pro is a division of Flatworld Solutions and has been providing high-quality insurance loss run processing services for more than 10 years. We are committed to the on-time generation of reports. Since we deal directly with insurance carriers, we make this a reality. We have an experienced team that can detect errors and rectify them in minutes to ensure there are no issues later.
We provide logical solutions that can help you simplify complex loss run reports. With expert support and help, you can rest assured of reliable solutions. If you are looking for a dependable third-party insurance loss run processing company, we are the best choice. To know more details about our services, contact us today.