RRG (RISK RETENTION GROUPS) companies offer a way to actually get commercial liability insurance policy in the usual way without buying coverage directly from insurers. The RRG (RISK RETENTION GROUPS) are set usually to serve the needs of a particular niche. When businesses or business owners want to obtain insurance coverage from an RRG (RISK RETENTION GROUPS) they take on a risk effectively within the group and then help in the allocation of costs among members.
Any person who chooses to be insured by a risk retention group has joint ownership of insurance, in other words, members of the RRG (RISK RETENTION GROUPS) collectively invest in a fund to be used only for liability issues. Risk retention groups do not write first party coverage’s such as property, workers’ compensation, or personal lines.
What is actually done in a RRG (RISK RETENTION GROUPS) is that members of each group are insured against claims and lawsuits. However, as a group of risk retention is technically considered an insurer who may purchase reinsurance. Reinsurance is a form of insurance that companies buy to sell a portion of their risk or distribution of losses during the course of several years.
One of the main advantages of the RRG (RISK RETENTION GROUPS) is that it is not necessary to meet more applications and approval of various states. A risk retention group must be licensed as an insurance company in their country only. RRG (RISK RETENTION GROUPS) can also lend stability in the payment of dues, such as cost and price reporting.
One of the most interesting advantages of the RRG (RISK RETENTION GROUPS) is in the comparison to standard insurance coverage, since it is cheaper for the company. The savings to the RRG (RISK RETENTION GROUPS) are available in a variety of ways. RRG (RISK RETENTION GROUPS) are also not affected by frequent changes in commercial liability insurance outside. Some also allow RRG (RISK RETENTION GROUPS) premiums that have gone unused for investments in place to roll, and therefore cover the cost of future premiums. There is also the no cost front man that benefits all members of the Group’s risk retention.
Statistics show that the financial ability to RRG (risk retention groups) is constantly growing. More than likely, it is because in the context of today’s economic recession, risk retention groups are an innovative and affordable option. They offer a different option of commercial insurance for those who want the stability of liability insurance, without the expense of costly insurance of a typical standard. To serve your particular niche and to find companies RRG (risk retention groups), start by consulting with PriMed Consulting for all of your physicians insurance needs.
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