Can someone tell us what self insured retention is???
Self-insured retention (SIR) is a part of some insurance plans, especially for liability insurance. It’s the amount of money a person or company has to pay by themselves before their insurance starts covering a claim.
Here is the simple definition of self insured retention
Total Coverage = SIR + Insurance Coverage
Where:
- Total Coverage is the total amount available to cover a loss,
- SIR (Self-Insured Retention) is the amount the insured party must pay out of pocket before the insurance coverage kicks in,
- Insurance Coverage is the amount the insurance policy will cover after the SIR is paid.