If you’ve never heard of a risk purchasing group, you’re probably wondering what exactly ESI Buying Group is offering. This quick guide provides answers to you most frequently asked questions.
What Is a Risk Purchasing Group?
A risk purchasing group is an option for similar businesses under the Liability Risk Retention Act of 1986. An RPG allows the group of businesses to purchase a group plan for liability insurance. This way, the companies save money by splitting the cost of the insurance coverage.
What Happens if One of the Companies Fails to Pay Its Share?
If one of the companies involved in an RPG doesn’t pay its share of a premium, the policy will be canceled only for that individual company. The rest of the group will continue with its coverage as described in the contract.
How Does It Work?
In addition to the benefit of saving money by using an RPG, members of one see several other benefits. Some of them include liability coverage designed specifically for the members’ needs and individual limits according to the individual company’s preferences.
Whether you want to join a risk purchasing group or you already have one established and are looking for a provider to work with, ensure you find a business like ESI Buying Group that is licensed, insured, and experienced in meeting the needs of companies like yours.