Policy Structure
Self-Insured Retention
A specified dollar amount that the insured must pay out of pocket before the insurance carrier's coverage obligations are triggered. Unlike a deductible, an SIR typically requires the insured to manage and fund the claim independently until the retention is exhausted. SIRs are more common in policies for larger law firms with greater financial capacity.
Related terms
DeductibleThe amount the insured must pay toward a covered claim before the insurance policy begins to pay. In...Aggregate LimitThe maximum total amount an insurance policy will pay for all covered claims during a single policy ...Per-Claim LimitThe maximum amount an insurance policy will pay for any single claim, including defense costs if the...