Equity Partners Risk Purchasing Group, LLC
A risk purchasing group is an insurance program that allows similar risks (private equity funds) to purchase key insurance coverages at discount rates. Using the purchasing power of multiple private equity groups, we are able to offer complete D&O/E&O coverage at competitive rates, previously unheard of. The risk purchasing group comprises the expertise of Royal Oaks Insurance LLC, Elkins Jones Insurance Agency Inc, and the Chubb group of companies among many others.
Members
- Comprised of Private Equity Funds, Venture Capital Funds, Fund of PE funds, and hedge funds
Coverage
- Directors & Officers Liability and Professional Liability Insurance
Executive Summary
- Private Equity Fund’s exposure to claims is increasing as economic climate worsens
- D&O/E&O rates for financial institutions are increasing
- Cost effective insurance coverage is the new objective
What is a Risk Purchasing Group?
- As of 2008, there are 735 Risk Purchasing Groups in the U.S.
- Any group of persons, corporations, or associations with similar liability risks who form an organization for the purpose of purchasing liability insurance on a group or buying club basis
- Purchasing Groups do not bear risk, but rather serve as a means to obtain liability coverage.
- RPG is not assuming the insurance risk, but rather is obtaining insurance on more cost-effective terms and conditions due to the purchasing power of the group
Benefits of a Risk Purchasing Group
- Objective is to save approximately 20-30% after year 2 in aggregate premiums for the group
- In years 1-2: hard savings of 5 - 7.5% (guaranteed)
- Soft savings of 5 – 7.5% (negotiated with underwriter)
- Total Savings = 10 – 15% per year in years 1-2
- Members can participate in a “group discount” for their liability policies as members of a “buying group”. Selection of Preferred Risks will enable greater underwriting profits
- Policies are tailored to the specific needs of that class, with access to loss control programs
- Provides rewards for low loss experience by sharing in underwriting profits with carriers - estimate to commence after year 2.
Coverage Limits/Benefits
- Each member may select its own limits. NO SHARED LIMITS.
- We may likely have the option of multiple self-insured retentions for each Member to select
- The option to elect extended reporting periods/tails will also be available
- The program is set up with no shared commissions to any local agents
- CHUBB is the primary carrier
Insurance Carriers
- The quality of coverage will be from an A++ carrier
- Chubb has agreed to offer the primary coverage – they place 40% of the D&O market, and offer the broadest coverage with the best claims handling services
- Excess carriers – XL, Houston Casualty, and Liberty Mutual
About the Risk Purchasing Group
Created By
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Royal Oaks Insurance Services LLC is an affiliate of Elkins Jones Insurance Agency Inc.
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Elkins Jones Insurance Agency, Inc.
Advisory Committee
Don Petrie – Managing Member
- Managing Member, Royal Oaks Insurance Services LLC
- Founder of Equity Partners Risk Purchasing Group LLC
R. Rudolph Reinfrank – Advisor
- Founding Member and Partner, Clarity Partners LP
Janet Jones – Advisor
- President, Elkins Jones Insurance Agency Inc.
Contact
Don Petrie – Managing Member
Email: dpetrie@elkinsjones.com
Phone:
818-788-9611
