New group captive launched to help bars and restaurants

Restaurants and bars across the US will soon have access to an insurance program built exclusively for their industry, thanks to a new group captive launched by CIC Services and the Ragnar Group. The new captive, domiciled in Utah, is designed to solve one of hospitality’s most pressing challenges: traditional insurers misclassifying establishments and driving premiums to unsustainable levels.

Traditional insurance carriers often assign restaurants and bars into broad or arbitrary categories such as “sports bar,” which can drive up premiums regardless of the establishment’s true risk profile. The new group captive applies unique underwriting guidelines that take a more deliberate and nuanced approach. Factors such as hours of operation, type of alcohol served, entertainment options and management practices will determine placement into appropriate categories, ensuring members are aligned with similar risk profiles.

“Our theory is simple. The vast majority of restaurants and bars are fundamentally misidentified when it comes to risk,” said Andrew R. Reina, chief executive of the Ragnar Group. “By introducing more precise guidelines and what we call ‘community underwriting,’ we believe this captive offers a fairer, more transparent solution to owners who have grown frustrated with traditional insurance models.”

Community underwriting incorporates feedback from existing policyholders into the review process for new applicants. Applications are thoroughly evaluated over a 30- to 45-day period, allowing for deeper understanding of the business and greater alignment between participants.

The captive is open to a wide range of establishments, including bars, pubs, nightclubs, and fine dining restaurants. While there are no explicit exclusions beyond gentlemen’s clubs, certain high-risk characteristics such as “cash only” businesses, wedding and special event venues, or establishments with mechanical riding devices will not be covered.

“Andrew came to us with a unique solution to solve a common problem in the restaurant and bar insurance marketplace,” said CIC Services principal Shawn Holland. “His approach is extremely well-researched, and his underwriting guidelines are meticulous. This novel approach impressed our team as well as actuaries and underwriters who have worked in this vertical for decades. We see this as a major step forward in empowering business owners to manage their insurance destiny.”

The group captive has already attracted significant interest from across the hospitality spectrum. Owners cite frustration with traditional carriers, distrust of insurers and the need for creative solutions as key drivers of demand.

The program will be officially available to members by the end of September 2025. To learn more about the group captive and membership opportunities, contact Andrew Reina at areina@theragnargroupinc.com or Travis Brewster at tbrewster@theragnargroupinc.com.

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