Risk Retention Groups

Delivering Outstanding Service 

The primary purpose of an RRG is to provide liability coverage for its policyholder/shareholder members.

A Risk Retention Group (RRG) is a member-owned and member-operated insurance company that pools the risks of its members, which typically share common interests or belong to the same industry or profession.

RRGs offer members the flexibility to design insurance policies that specifically address their risks and needs. This customization allows the RRG to provide more comprehensive coverage and better protection.
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Operating with Greater Flexibility

Unlike traditional insurance companies, RRGs are formed under the federal Liability Risk Retention Act of 1986, allowing them to operate across state lines with greater regulatory flexibility. RRGs can provide access to risk-sharing arrangements, customized
policies, and regulatory advantages, all while maintaining control over their insurance programs. They offer a unique and collaborative approach to risk management as U.S. corporations face more challenges in obtaining traditional insurance coverage.

Construction Practice Group FAQs

What is a Risk Retention Group (RRG)?
Who can create or be in an RRG?
How does SRS assist construction companies in setting up a captive?
What are some lines of coverage an RRG cannot write?
Does an RRG need a license in all states in which they operate?
Why would someone want to form an RRG?
What are some of the benefits?

Risk Pooling and Coverages

RRG members pool their risk, with each member contributing premiums, and these funds are collectively used to cover the group’s liabilities and losses. By pooling risks, RRG members can spread the financial burden of claims across the group.

This can lead to more stable premium costs and reduced exposure to catastrophic losses. RRGs are often formed by businesses or professionals with similar risk profiles and insurance needs, such as healthcare
providers, contractors, or product manufacturers. RRGs create
insurance policies tailored to the unique risks and requirements
of their members. This customization ensures that coverage
aligns closely with the group’s needs.
Existing Captives
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