College Risk Retention Group, Inc. (CRRG) is a liability insurance company that provides coverage for private institutions of higher education in the United States.
It was established in 2011 as a subsidiary of EIIA, a non-profit organization that offers risk management and insurance solutions to faith-inspired colleges and universities.
CRRG is licensed in Vermont and operates as a risk retention group (RRG) under the federal Liability Risk Retention Act of 1986.
In this article, we will review the services, benefits, and challenges of CRRG as an alternative insurance option for educational institutions.
It is a registered insurance company.
Services Offered by CRRG
CRRG offers a range of liability insurance products to its members, including:
- General liability
- Educators legal liability
- Employment practices liability
- Sexual misconduct liability
- Cyber liability
- Foreign Liability
- Student professional liability
- Student accident insurance
It also provides claims management, loss control, and risk management services to its members.
CRRG works with a network of approved defense counsel and expert witnesses to handle litigation and settlements.
It also offers online training, webinars, newsletters, and other resources to help its members prevent and mitigate losses.
Benefits of Joining CRRG
CRRG claims to offer several advantages to its members, such as:
- Lower and stable premiums: CRRG members can benefit from lower and more predictable premiums than the traditional insurance market. CRRG also returns surplus profits to its members in the form of dividends or premium credits.
- Customized coverage: CRRG members can tailor their coverage to suit their specific needs and exposures. CRRG also offers broader coverage than most commercial insurers, especially for emerging risks such as cyber liability and sexual misconduct.
- Member ownership and control: CRRG members are the owners of the company and have a voice in its governance and operations. CRRG members elect the board of directors and have access to financial reports and performance data.
- Exemption from state regulation: As an RRG, CRRG is exempt from most state laws that regulate insurance. This means that CRRG can operate across state lines without obtaining multiple licenses or complying with different rules. This can save time and money for CRRG and its members.
Challenges Faced by CRRG
CRRG also faces some challenges as an RRG, such as:
- Limited scope of coverage: As an RRG, CRRG can only write liability insurance for its members. It cannot offer property or workers’ compensation insurance, which may require its members to purchase additional policies from other insurers.
- No access to state guaranty funds: As an RRG, CRRG is not required to contribute to state guaranty funds, which are designed to protect policyholders in case of insurer insolvency. This means that if CRRG becomes insolvent, its members may not have access to state funds to pay their claims.
- Potential regulatory changes: As an RRG, CRRG operates under the federal LRRA, which preempts state laws that would otherwise apply to insurance companies. However, some states have challenged the LRRA or proposed amendments to it that could affect the operations and viability of RRGs. For example, some states have sought to impose taxes, fees, or reporting requirements on RRGs or limit their ability to write certain types of coverage.
CRRG is an alternative insurance option for private institutions of higher education that seek lower and stable premiums, customized coverage, member ownership and control, and exemption from state regulation.
However, CRRG also has some limitations and risks as an RRG, such as limited scope of coverage, no access to state guarantee funds, and potential regulatory changes.
Therefore, educational institutions should carefully weigh the pros and cons of joining CRRG before making a decision.
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