What do Purchasing Groups primarily do?

Purchasing Groups are primarily formed to allow their members to obtain liability coverage collectively. By banding together, these groups leverage their collective buying power to negotiate better insurance terms, lower premiums, and more favorable coverage options than individual members might be able to obtain on their own. This structure helps reduce costs while ensuring that members have adequate insurance coverage tailored to their specific needs. The emphasis on liability coverage is particularly important as it can protect businesses from the financial repercussions of lawsuits or claims made against them.

Unlike the other options, which either focus on unrelated types of insurance or functions that Purchasing Groups do not perform (such as underwriting new policies or offering exclusive life insurance), the primary mission of these groups is centered around providing their members with effective liability insurance solutions.