What is a Risk Retention Group (RRG)?

A Risk Retention Group (RRG) is specifically designed to provide mutual insurance coverage for members of a specific profession or industry. This type of insurance organization allows its members to pool their resources to share the risks associated with their field, thus minimizing individual exposure to potential losses. The members are typically involved in similar activities, which allows the RRG to tailor its coverage options to meet the unique risks associated with that occupation.

By focusing on specific professions, RRGs can manage risks more effectively and can often provide more cost-effective insurance solutions than traditional insurance companies. This mutual aspect strengthens the group as it promotes shared responsibility and collaborative management of risks.

The other options do not accurately describe an RRG. An RRG is not for multiple unrelated professions, nor is it limited to providing only liability coverage or insuring personal property. It serves a focused group with shared interests and risks, which is central to its purpose and functionality.