RRG not the first NBFAA program
SILVER SPRING, Md. - In its latest attempt to address membersÃ¢â‚¬â„¢ concerns over skyrocketing insurance, the NBFAA is forming a risk retention group (RRG) to provide affordable general liability coverage.
The formation of the RRG is not the first time the NBFAA has taken steps to help control insurance costs for members.
Ã¢â‚¬Å“WeÃ¢â‚¬â„¢ve had successful programs, and weÃ¢â‚¬â„¢ve had unsuccessful programs,Ã¢â‚¬Â said NBFAA Marketing and Membership Director David Mandel. Ã¢â‚¬Å“Mainly it is due to the fluctuations in the insurance market. The insurance market is very cyclical, and one of the goals of this program is to flatten out those cycles.Ã¢â‚¬Â
In response to what it called Ã¢â‚¬Å“excessive premiumsÃ¢â‚¬Â in 1986, the NBFAA established an insurance program for its members.
Originally established through a series of reinsurance companies, the program was transferred to a standard insurance company in 1987.
The program moved to two other insurance companies, before it was discontinued when the company that was handling the program declined to renew the policy in 1995.
Mandel said unlike previous NBFAA insurance programs that relied on outside companies to provide coverage, the NBFAA would have control over the RRG, which he feels is the best solution to providing stable, affordable coverage to its members.
Ã¢â‚¬Å“We know this program is going to succeed,Ã¢â‚¬Â he said.