What is an RRG?

A Risk Retention Group (RRG) is a specialized type of insurance company created by the federal Liability Risk Retention Act (LRRA) of 1986. RRGs are owned by their members, who are also policyholders. They are designed to allow businesses with similar risks to band together to make liability insurance available to members. RRGs operate under the federal Liability Risk Retention Act, which allows them to provide coverage across state lines without the need to comply with some of the individual state insurance regulations. Traditional insurance companies must be licensed in each state where they do business, which can increase operational complexity and costs. RRGs specialize in providing liability insurance for their members’ related business or activities, allowing them to tailor their policies and underwriting to the specific needs and risks of their members.

Key Features of an RRG

• Owned and governed by its insured members
• Provides liability insurance only (no property coverage)
• Members must be engaged in similar or related business activities
• Regulated by the state in which the RRG is domiciled
• Can operate in multiple states after registering, without separate licensing

Frequently Asked Questions

Why choose an RRG over a traditional insurer?

RRGs give members more control over underwriting, claims handling, and premiums. Profits are often reinvested to benefit members, not shareholders.

Can RRGs operate in all 50 states?

Yes. Once licensed in one state, RRGs can register to operate in others without obtaining separate licenses in each.

Is InsuraTruck RRG licensed in my state?

Please refer to our Coverage Map on the Home page or contact us directly for availability in your state.