March 31, 2009
A Risk Retention Group is a form of self-insurance. Unlike a traditional insurance company, an RRG is formed and owned by its policyholders, and covers specific liabilities and actions, as defined by the RRG, which are most likely not covered by any insurance you’re going to be able to get. As mysterious as that might sound, RRGs are common practice for law enforcement officers, doctors practicing emergency medicine, contractors, medical product manufacturers, and a variety of other professionals in high-risk industries.
The important part of all this insurance jargon is that CrossFit will form its own independent company. This company will not be owned by CFHQ; it will be owned by YOU—the community, our affiliates and trainers. The owners will participate in underwriting, risk management, claims administration, and finance committees, all chaired and populated by people from our own community. We will have complete insight to and control of all facets of the RRG operations.
The CF-RRG was designed to fill a dangerous chink in our armor, and in doing so it serves an even more foundational goal: defense of our reputation. Think of the CF-RRG as our war chest, providing the resources to protect our community, methodology, and the trainers and affiliates whose livelihood depends on CrossFit’s success. It was also designed to guarantee that affiliates and trainers will be able to obtain insurance, and that insurance won’t be canceled when the insurance company gets skittish about what it has read in the media about “the dangers of CrossFit.”
Folks, at the moment, the RRG is for US affiliates only; more to follow for our non-US team, but please don't sign up if you're not in the US. Thanks!