New Group Captive Insurance Program Targets Restaurants and Bars in U.S.
CIC Services, LLC and The Ragnar Group, Inc. have launched a group captive insurance program tailored specifically for restaurants and bars. This new captive, domiciled in Utah, aims to address the issue of traditional insurers misclassifying establishments, which often results in inflated premiums. Unlike conventional underwriting that broadly categorizes businesses, the captive uses detailed underwriting criteria considering factors like hours of operation, types of alcohol served, entertainment options, and management practices to better align risk profiles.
The program introduces a community underwriting model, which integrates feedback from current policyholders in evaluating new applicants. This process takes 30 to 45 days, allowing for in-depth understanding and precise risk assessment, thereby enhancing risk segmentation and fairness in pricing. The captive is accessible to a range of hospitality businesses including bars, pubs, nightclubs, and fine dining restaurants, while excluding higher-risk or niche segments such as gentlemen's clubs, cash-only operations, and venues with mechanical riding devices.
This initiative addresses a prevalent challenge in hospitality insurance markets where blanket classifications obscure underlying risk diversity. The collaborative approach seeks to empower restaurant and bar owners with more transparent and equitable insurance solutions. Industry response has been positive, with significant interest across the sector, reflecting demand for specialized underwriting approaches that deviate from traditional insurance paradigms.
CIC Services has a history of managing captive insurance for middle-market businesses, leveraging ownership structures for risk management and cost control. The Ragnar Group contributes its expertise in property and casualty insurance and financial services, emphasizing personalized and competitive solutions without reliance on automated or offshore support. This captive stands to influence underwriting trends within the restaurant and bar insurance market by promoting tailored risk evaluation and member-driven governance.
The program will be available for membership starting late September 2025, marking an innovative step in hospitality insurance offerings. Interested parties can obtain more information and apply directly through contacts at The Ragnar Group or CIC Services. This captive represents a strategic development in niche insurance offerings, potentially shaping future models for industry-specific coverages and premium optimization.