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patpat Jul 4, 2019 1:55 PM

Good Afternoon, is it safe to place business with RRG companies? I see them popping out for transportation and contractor liability here and there. 

Most appear to be not rated by AM Best and they tend to underprice the standard markets.

Do city and municipalities accept their additional insured certificates?

I appreciate your input.

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fjfisher601 Jul 8, 2019 10:45 AM
If unrated- I'd stay away formthem One of the reasons is that your E&O insurance may not cover you when using an unrated insurer.
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fjfisher601 Jul 8, 2019 10:45 AM
If unrated- I'd stay away formthem One of the reasons is that your E&O insurance may not cover you when using an unrated insurer.
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brswick Jul 8, 2019 12:15 PM
I agree with fjfisher - be very, very cautious.  RRG's in general have a very checkered history.  There is absolutely no safety net in case of insolvency.  Pricing a risk below the rest of the market is a "red flag" for any carrier, and that is frequently what causes an RRG to implode.  We use one RRG for legal malpractice, but it is wholly owned by one of the largest insurers in the country with an "A++" rating from AM Best, AND they provide a cut-through endorsement to the reinsurer.  Finally, check your own E&O policy, as there may very well be an exclusion for insolvency if a carrier is either unrated or below a certain rating at the time that the coverage is placed.
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RZaiser0 Jul 12, 2019 11:11 AM
We have many Truckers who come to us to get out of an RRG due to their shippers will not give them a load.  There is no recourse with the Department of insurance either, as they are technically not an insurance company. Our Truckers also claim that the customer service is not quick and efficient as they'd like.  I'd stay clear of them.  In case of insolvency it could leave you on the line to pay the claim.

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