what is loss cost
Loss costs do not include expenses common to all businesses such as salaries, rent and utilities. It is up to each insurance company to develop its own loss cost multipliers (LCM), which is the second component of your rate.This component is based on the companyâs own operating expenses, taxes and profit provision.t is up to each insurance company to develop its own loss cost multipliers (LCM), which is the second component of your rate.