Loss Run Authorization Letters Explained

What Is a Loss Run Authorization Letter?

A loss run authorization letter is a signed document from the insured that authorizes their insurance agent or broker to request claims history from current or prior insurance carriers. Without this letter, carriers will not release loss runs to anyone other than the named insured themselves — it is a fundamental privacy protection, and carriers enforce it consistently.

The authorization letter is the legal bridge between the insured's right to control their own claims data and the agent's need to access that data in order to quote new coverage. Most carriers have no formal template requirement, but they do require that the letter be signed, dated, and specific enough to identify what is being authorized.

When Is an Authorization Letter Required?

Authorization letters are required in two primary situations:

• New business. Any time an agent is quoting an account where they do not already hold the broker-of-record relationship, they need a signed authorization to request loss runs from the incumbent carrier. There are no exceptions to this rule for well-run carriers.
• Agent-of-record changes. When an insured switches agents at renewal, the new agent needs authorization to access the prior three to five years of loss runs — even though those years fall under policies that were already in force.

Renewals where the agent has an existing broker-of-record letter typically do not require a separate authorization. However, if the insured has recently changed their legal entity name, merged with another company, or had any ownership changes, some carriers will request updated authorization regardless of the existing relationship.

What Should a Loss Run Authorization Letter Include?

A properly drafted authorization letter covers these elements:

• Named insured. The exact legal name as it appears on the policy — not a DBA, not a shortened version. Mismatches cause rejections.
• FEIN or SSN. Tax identification number for the insured entity, used by the carrier to confirm identity and locate the account.
• Policy numbers. If known. If not, the coverage type and approximate policy period are sufficient for most carriers.
• Carriers to contact. List each carrier specifically, or use broad language such as "all current and prior carriers" to avoid having to amend the letter for each one.
• Date range. Typically five years prior to the current date, or the full policy history if shorter.
• Agent information. The name of the agency, the producing agent, and the agency's contact information.
• Insured signature and date. A wet signature or electronic signature that complies with the federal E-SIGN Act of 2000.

Most authorization letters expire after 90 days. Carriers will reject requests submitted with letters older than this threshold. Building expiration tracking into your process prevents the frustration of a submission stalling over an expired document.

How to Get Authorization Letters Signed Efficiently

The fastest approach is to collect authorization as part of the initial new-business onboarding workflow, before any carrier requests are sent. Integrating e-signature collection into the intake process — rather than treating it as a separate step — eliminates most delays.

Under the federal E-SIGN Act of 2000 and the Uniform Electronic Transactions Act (UETA), electronic signatures carry the same legal weight as wet signatures for documents of this type. The vast majority of carriers accept e-signed authorization letters. A small number of specialty or surplus lines carriers still prefer wet signatures for certain lines, but they are the exception.

For agencies managing high submission volume, batch collection works well: send authorization requests to all new prospects at the start of each week, set a reminder to follow up after 48 hours, and do not submit carrier requests until the signed letter is in hand.

Common Mistakes With Authorization Letters

• Wrong entity name. Using a DBA instead of the legal entity name is the most common rejection reason. Always verify the exact name from the policy declarations page.
• Missing or incomplete signature. An unsigned or partially signed letter is rejected. If using e-signature software, confirm the workflow is set to require completion before the document is returned.
• Expired letters. A 90-day expiration window passes quickly on complex submissions. Track expiration dates alongside the submission and re-collect if the submission extends beyond the window.
• Not including all carriers. An authorization letter that names only one of three prior carriers creates additional work later. Use broad language that covers all carriers in a single document.
• Treating it as optional for "existing" clients. If the insured has been with the agency for years but is now shopping a new line with a carrier where the agency is not the broker of record, authorization is still required.