Paying attention to commercial liability is key when it comes to protecting your business for the long haul. If you’re looking for more control over your current insurance coverage, exploring your options can be a useful move. For some, a risk retention group (RRG) is the ideal solution. In order for you to determine whether this is the right fit for your business, look over these points, and get a better feel for what the option entails.
Risk Retention Groups Explained
Dictated by the Risk Retention Act of 1986, an RRG has the purpose of spreading commercial liability risks among all of the group members. This can be quite useful when it comes to making sure that everyone who falls under your policy is protected in the same way. Liability exposures can include anything from Errors and Omissions to Product Liability, meaning an RRG can provide you with a range of essential coverage. There are some limitations, however. Workers’ Compensation and other insurance options are not usually included. Other key advantages of an RRG include:
- Better coverage and stable market rates
- Reduced fees
- Streamlined filing and licensing processes
Weigh Out the Pros and Cons
Understanding the pros and cons of an RRG can help you get a better feel for how this type of plan works. Research the details and determine if your company stands to benefit from exploring new insurance options.