New Captive Insurer Offers Tailored Insurance for Restaurants and Bars

Restaurants and bars will soon gain access to a specialized insurance program through a new group captive insurance company launched by CIC Services, LLC, and the Ragnar Group, Inc. The captive, domiciled in Utah, is designed to address the widespread misclassification of hospitality businesses by traditional insurers—often resulting in inflated premiums.

"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," Andrew R. Reina, CEO of the Ragnar Group, said.

The program distinguishes itself by factoring in nuanced risk variables, such as hours of operation, type of alcohol served, presence of entertainment, and management practices. This tailored underwriting contrasts with traditional practices that broadly categorize establishments as "sports bars," regardless of their individual risk profile.

The concept of community underwriting is central to the captive's structure. Under this model, existing policyholders contribute feedback during the application review process, which spans 30 to 45 days. This extended evaluation period aims to promote better alignment among insured members.

The captive is open to a wide range of hospitality businesses, including bars, pubs, nightclubs, and fine dining restaurants. However, certain categories are excluded—such as gentlemen's clubs, wedding venues, "cash only" operations, and establishments featuring mechanical riding devices.

"Andrew came to us with a unique solution to solve a common problem in the restaurant and bar insurance marketplace," Shawn Holland, principal at CIC Services, said. "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."

The program is set to open to new members by the end of September 2025 and has already attracted strong interest from across the hospitality industry.