What federal law was enacted to help businesses obtain liability insurance in times of crisis?

The Liability Risk Retention Act is a significant piece of federal legislation enacted in 1986 to facilitate the establishment of risk retention groups. These groups allow businesses to band together in order to collectively purchase liability insurance, particularly in times of crisis or in circumstances where traditional insurance markets may be unavailable or too expensive. By pooling their risks, businesses can achieve greater bargaining power and access to coverage that they may not have been able to secure independently. This act aims to address the difficulties businesses face in obtaining necessary liability insurance, particularly in high-risk industries or following catastrophic events. The establishment of risk retention groups under this law provides a viable alternative for businesses seeking more affordable coverage options.