Risk retention groups provide coverage for all types of liability risks except

Risk retention groups provide coverage for all types of liability risks except

• A. Workers' compensation
• B. Auto liability
• C. Medical malpractice
• D. Product liability

Answer: (A)

Risk retention groups are liability-focused insurers formed under the Liability Risk Retention Act to cover members’ liability exposures. They typically insure auto liability, medical malpractice, product liability, and general liability. Workers’ compensation coverage, however, is handled through state workers’ compensation programs or private workers’ comp carriers and is not provided by risk retention groups. The LRRA restricts RRGs from writing workers’ compensation, so it remains outside their offerings. That’s why workers’ compensation is the exception.

Risk retention groups are liability-focused insurers formed under the Liability Risk Retention Act to cover members’ liability exposures. They typically insure auto liability, medical malpractice, product liability, and general liability. Workers’ compensation coverage, however, is handled through state workers’ compensation programs or private workers’ comp carriers and is not provided by risk retention groups. The LRRA restricts RRGs from writing workers’ compensation, so it remains outside their offerings. That’s why workers’ compensation is the exception.