What is the liability insurance company owned by its members and created to cover the members' liability risks?

A Risk Retention Group (RRG) is a liability insurance company formed by its members to provide coverage specifically for the liability risks faced by those members. This type of organization allows businesses or individuals with similar liability exposures to pool their resources and share the costs of insurance, effectively managing their risks together. RRGs were established by the Liability Risk Retention Act of 1986, which allows members to create a self-insured entity to share risks and expenses associated with liability insurance.

The primary advantage of an RRG is that it is owned by its members, allowing them greater control over their insurance needs and potentially lower costs. Members are typically similar in nature, which can lead to more tailored coverage that meets their specific requirements. This structure also simplifies the claims process since the members understand each other's businesses and risks.

In contrast, a Captive Insurer is primarily focused on providing insurance to its parent company or companies and may not cover a broader group of members like an RRG does. An Insurance Pool typically refers to a collective arrangement where multiple insurance companies come together to share certain types of risks, which differs from the member-owned, direct Liability coverage model of an RRG. The Surplus Lines Association pertains to written insurance not typically available in the