Definition of Contractor RRG A Contractor Risk Retention Group is a self-insurance plan – or group captive insurer – operating under the auspices of the Risk Retention Act (RRA) of 1986 that can cover all the liability exposures – other than workers compensation exposures, of its owners. Contractor RRG companies allow members who engage in construction activities to write liability insurance for all or any portion of the exposures of group members, excluding first party coverages, such as property, worker’s compensation and personal lines, such as home, auto and recreational vehicles. Authorization under the federal statute allows a group to be chartered in one state, but able to engage in the business of insurance in all states – subject to certain specific and limited restrictions. The Federal Act preempts state law in many significant ways, therefore RRGs are not subject to the individual state laws that would otherwise prohibit the formation of group captives or make it difficult to form or operate them. Contractor Risk Retention Group Advantages: Avoid state filing and licensing requirements Membership controls risk and litigation issues Elimination of market residuals No expense for fronting fees Un-bundling of services Exemption from countersignature laws for agents and brokers Stabilize coverage and rates Contractor Risk Retention Group Disadvantages: Risks are limited to only liability insurance Not permitted to write non-related business No guaranty fund availability for members for claims May not comply with certificate requirement or financial responsibility laws While the Exchange was promulgated as a Lloyd s-type facility, what has evolved is a group of individual underwriting syndicates, utilizing the authorities earned by the Exchange, to provide capacity in a wide variety of programs or niche underwriting....
GENERAL CONTRACTORS Licensed general contractors and other trade contractors who subcontract labor from yours and other business types must comply with their own general liability insurance policy by requiring all subcontractors to provide a contractor Insurance Certificate with an Additional Insured Endorsement (AI) – to get more jobs. The AI requirement will also extend to you – after you buy a general liability policy – you too must require any business you hire as a subcontractor to name your company as AI on their policy. Additional insured endorsements range in price from free to $500 or more, depending on the exact requirement. Most insurance company rated with LiveRate® include unlimited basic AI endorsements – at no additional charge – which is why you should shop online for the lowest rate. PROPERTY MANAGERS Commercial and residential property managers – as well as many individual landlords have a short-list of contractors who are called for installation, remodel and maintenance services – and will only hire an insured contractor. Get on the contractor insurance certificate list – and get more jobs as soon as today! Compare Rates Online REFERRAL SERVICES Contractor Insurance Certificate BUSINESS LICENSE Contractor Insurance Certificate ADVERTISE Sample Contractor Insurance Certificate ...
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