The Ins and Outs of Risk Retention Groups

In an age of costly insurance premiums, small businesses often to look to an alternative for protection from operational liabilities. RRG insurance, or risk retention group coverage, is one way to lower the cost of protection without completely compromising on coverage.

An RRG is a type of captive insurance, with a group of businesses (operating in or with similar structure and products) banding together to form their own insurance company. The general idea is like an insurance co-op, although the process and payouts are much more complex. The overarching purpose of establishing and then joining with an RRG is to assume and spread the risks of commercial liability exposure amongst all the members.

Having RRG insurance coverage can be beneficial, as their cost-effective operations and offerings can be state-wide or nationwide. Federal laws dictate much of what can and can’t be covered or processed, but the flexibility and affordability often make this a strong choice with smaller companies.

RRG insurance work with general liabilities, often including the following specifics:

Errors and Omissions
Medical Malpractice
Directors and Officers
Product Liability
Professional Liability

It does not include workers’ co