What is self insured retention

General Forum Discussions
1

Can someone tell us what self insured retention is???

2

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.

3

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.