What is a primary characteristic of a purchasing group?

A primary characteristic of a purchasing group is that its members share the purchase of liability insurance. Purchasing groups are formed by businesses with similar risks and operate by pooling their purchasing power to buy insurance, often obtaining better rates and coverage than they might individually. By collectively negotiating with insurance providers, members can reduce costs and enhance their bargaining strength.

The focus on liability insurance is crucial because purchasing groups often aim to address specific risks that members face in their individual operations. This helps to streamline insurance procurement and can lead to a more tailored coverage that reflects the unique needs of the group members.

The other characteristics mentioned in the other options do not apply to all purchasing groups. For instance, while members can indeed have varying business models, it is not a defining trait. Moreover, members of purchasing groups typically do not pay reinsurance premiums directly, as reinsurance transactions occur between insurers. Lastly, purchasing groups do not provide workers' compensation benefits, as that typically falls under separate insurance arrangements distinct from liability coverage.