Select an option

Need Help?

Get a Quote for a Program

Risk Purchasing Groups.

Commonly asked questions about risk purchasing groups.

Several of our primary liability and umbrella liability programs are risk-purchasing groups. They are filed and approved in all 50 states.

Q: What exactly is a risk-purchasing group, and how does it differ from a risk retention group?

A: Under the Liability Risk Retention Act of 1986, a purchasing group is any group of similar businesses that share common risk characteristics and who band together to purchase liability insurance. There are legal requirements as to how the group formulates itself, but the goal of joint insurance buying is sufficient reason for its existence. Risk purchasing groups purchase liability insurance coverage from insurance carriers. Risk retention groups provide liability insurance and act as and are treated as insurance companies with capital requirements.

Q: How do we know a purchasing group or retention group is permitted in our client's state(s)?

A: Our groups are registered in every state where we have insureds participating. Our compliance department maintains current information about risk purchasing group and risk retention group filing requirements and handles all necessary paperwork on behalf of our groups.

Q: Do participants in the Distinguished Umbrella Program share the program's aggregate limit?

A: No. As long as your client's primary commercial liability coverage has a per location limit, which we require, our umbrella program will follow form right up to the full excess limit for each location.

Q: If one member of the risk purchasing group fails to pay their premium, will the policy be cancelled?

A: Non-payment of premium will result in the individual insured's coverage being cancelled, not the entire group's.

Q: Could a large claim made by another insured lead to cancellation of my coverage?

A: No, your coverage would not be cancelled.