What is a group of parties with similar coverage needs that combines for acquiring liability insurance called?

A group of parties with similar coverage needs that combines for acquiring liability insurance is known as a Risk Purchasing Group. This arrangement allows individuals or businesses with comparable risks to pool their resources together to negotiate better terms, coverage, and premium rates for their insurance needs. This collective bargaining power can lead to more favorable conditions because insurers are often willing to accommodate groups that present reduced risk levels through shared characteristics.

Risk Purchasing Groups are particularly beneficial for entities that may otherwise struggle to secure adequate coverage on their own due to the nature of their operations or the risks they face. In this context, the group's shared interests in coverage can lead to increased access to the necessary insurance products while also promoting cost savings.

In contrast, other concepts, such as Risk Retention Groups, focus on groups that self-insure a portion of their risk and provide liability coverage to their members. Reinsurance Groups pertain to insurance companies that support each other by transferring portions of risk, while Insurance Alliances may refer to broader collaborations between companies but do not specifically denote a focused group aimed at acquiring liability insurance.