Cooperative Insurance
What Does Cooperative Insurance Mean?
Cooperative insurance is a type of insurance provided by a group, organization, or association. For instance, many employee associations and trade unions offer cooperative insurance policies.
By purchasing cooperative insurance, policyholders can pool their resources with others who face similar risks, enabling them to obtain more extensive coverage at a more affordable rate.
Insuranceopedia Explains Cooperative Insurance
Everyone involved in the cooperative and contributing to the insurance policy receives a portion of ownership proportional to their contribution. For example, someone who pays for five percent of the total policy would hold five percent ownership.
Trade unions often provide this type of insurance because members may face similar risks, making it economically sensible to purchase coverage as a group.
