In the world of business, there are times when working with others can prove far more beneficial than going it alone. This is also true when you are exploring your insurance needs. Risk-retention groups offer you the chance to share the costs with others involved in similar industries as your own. These organizations operate under the 1986 Risk Retention Act and offer self-insurance to groups.
As reported by the experts at www.caitlin-morgan.com, this type of insurance applies to business owners who face the same liabilities with their companies. Though the groups need to be headquartered in one specific state, the members of the group are free to engage in the business of insurance in all states. Additional benefits that come along with this type of plan include:
Stable market coverage and rates
No expenses related to fronting fees
No market residuals
There are a number of considerations to take before you determine whether or not this kind of program is the right fit for your needs. Only liability insurance can be written in this type of group, which may not be ideal for all.
Give yourself plenty of time to research the details of this option. The more you know, the easier it will be for you to decide if it is a good fit for your future.