Running an assisted living center undoubtedly comes with risks of all sorts. In that case, protection is vital to protect your business from substantial loss. If liability insurance is eating away at your cash flow, you may be exploring the possibility of some form of self-insurance. Risk retention groups are a way to up your liability protection without boosting your costs.
Risk Retention Groups at a Glance
The groups are specifically for insuring businesses and must form as liability insurance companies. One state serves as the domicile, but other states can participate in the group. This is an easier process than traditional insurance companies without the need for individual licensing or contribution to guaranty funds.
By setting up a risk retention group or joining an existing one, assisted living center owners pool together resources to make a powerful impact.
Benefits of Risk Retention Groups for Assisted Living Facilities
Instead of competing with similar businesses, owners will find it refreshing to join a group where like companies help each other. Combining resources, skills, and expertise helps the industry as a whole. It improves the success rate and business performance. The group setup and combining funds naturally helps offset high premium costs.
The captive status opens more doors for options and customized insurance solutions. The setup makes way for self insurance where you can reserve funds and handle risk on a case-by-case basis instead of filing claims each time and raising premium costs. As a contributor, you also reap the benefits from your share of underwriting costs and surplus.
Strength in Numbers
As an assisted living facility owner, you can rest assured your group is in it for the long haul. RRGs continue to be a strong driving force in the commercial liability insurance industry. Figures from the NAIC suggest that in recent years they accounted for a total of 238 groups and are growing. RRGs are an optimal solution for medical facilities as costs continue to rise.
Financials have remained consistent in growth throughout any changes, with the largest groups maintaining $722 million of premium. You will also find peace of mind in knowing the National Risk Retention Association provides support to RRG owners and insureds. The non-profit 501 (c)(6) organization handles legal and legislative matters to improve the quality of your experience within an RRG.
Medical Malpractice Coverage
The healthcare industry is one of the largest industries to join forces with risk retention groups. Of the commercial policies groups write, malpractice insurance accounts for the highest number. When you are dealing with delicate loved ones, it is almost inevitable for lawsuits to surface at some point. With rates that are normally high outside of a group setting, assisted living centers could free up cashflow by joining an RRG.
How Venture Captive Management Can Help
We have a track record of success working with countless companies in our risk retention group that we first established in Washington, D.C. Our multi-talented team has the skills to incorporate state and industry standards into your strategy. Place the task of setting up alternative risk funding in our hands, and focus on taking care your clients. Contact us today to get started.