Sample Loss Cost Report

This sample Loss Cost Report is for a specifically rated property in a sprinklered office building with three occupants. The construction class is modified fire resistive, and the Public Protection Classification (PPCTM) is 3. The higher BGI loss costs for the restaurant occupant indicate a higher loss potential.

Experience Level Adjustment (ELA)
The ELA is based on ISO's annual actuarial reviews of premium and loss data. This critical information reflects increasing or decreasing industry loss experience for each of the major statistical classifications in each state — giving you the competitive pricing edge you need to stay profitable. When you retrieve a Loss Cost Report, you'll get the current loss costs first. But if your company hasn't adopted the most current ELA, you can choose the appropriate prior one from a drop-down menu. You'll find up to seven prior levels, and the system adjusts the loss cost to reflect the ELA you select.

Also, for each ELA, the Loss Cost Report provides the ISO filing designation used with state insurance regulators and the ISO circular number that announced the implementation date.

Basic Group I (BGI) loss costs
BGI perils include fire, lightning, explosion, vandalism, and sprinkler leakage. The report displays loss costs for the building and its occupants.

Basic Group II (BGII) loss costs
BGII perils include windstorm or hail, smoke, aircraft or vehicle, riot or civil commotion, sinkhole collapse, and volcanic action. The report displays the ISO loss costs for the building and its occupants, in addition to the BGII Rating Group symbol.

Protective Safeguard Clause
The Protective Safeguard Clause highlights which (if any) protective features have received credit in the BGI loss cost and which you should include in the Protective Safeguard Endorsement. Protective features include:

1. automatic sprinkler system
2. automatic fire alarm
3. security service
4. subscription fire department service contract

Commercial Statistical Plan (CSP) codes
The CSP codes help you properly record the required statistical codes, including:

• CSP territory code
• CSP class codes for the building and each of the occupants
• BGII CSP code
• RCP (Rating Plan/Construction/Protection) code

R — The first digit identifies how the building is rated:

1. specifically rated, nonsprinklered
2. class-rated
3. class-rated, substandard conditions
4. specifically rated, sprinklered

C — The second digit is the building's CSP construction class:

1. frame
2. joisted masonry
3. noncombustible
4. masonry noncombustible
5. modified fire resistive
6. fire resistive

P — The third and fourth digits show the building's Public Protection Classification (PPCTM) code: 01 to 10.

» Return to Loss Cost Reports.

For more information . . .
. . . about ISO's Specific Property Loss Costs — or to get in touch with a sales representative — contact ISO. You can also call us at 1-800-888-4476.