1. Insurance Terms & Definitions/
  2. Insurance Terms Starting With R

Risk Purchasing Group

What is a Risk Purchasing Group?

A risk purchasing group is a group of individuals or businesses with similar risk profiles who come together to purchase liability insurance coverage. These groups are formed under the federal Risk Retention Act (RRA) of 1986, which allows them to purchase insurance coverage on a group basis. Groups can often purchase coverage at lower rates than they would be able to obtain individually. Members of a risk purchasing group can be located in multiple states, and the group itself is responsible for arranging and administering the insurance coverage.