That portion of risk or potential loss that is assumed by an insured, such as a deductible, self-insurance, or no insurance. The insured will perform all the functions normally undertaken by an insurance company for losses within the SIR, including claims adjusting and audits, funding and paying claims, and complying with applicable state and federal laws and regulations. PureShare ActiveMetrics, a proactive metrics management application, helps monitor risk exposure and insurance claims.
In umbrella insurance, self-insured retention is similar to a deductible in other types of insurance. The self-insured retention is the amount of damages for which the policyholder is responsible before the umbrella coverage begins to cover a loss.
Percentage of a risk or potential loss assumed by an insured, whether in the form of a deductible, self-insurance, or no insurance at all.
The amount of loss for which the insured agrees to be responsible before the insurer begins to pay for a loss. Unlike a deductible, the insured is usually responsible for handling claims within the self-insured retention.
A form of risk financing through which a firm assumes all or a part of its own losses.
Refers to the portion of a loss that is retained by the Insured.
The SIR is an amount negotiated by the employer and the excess insurance company. (The SIR is also sometimes referred to as the "specific retention.") It acts as a deductible and is usually stated in increments of $50,000, i.e. $200,000, $250,000, $300,000, $350,000, etc.
That portion of a risk or potential loss assumed by an insured. It may be in the form of a deductible, self insurance, or no insurance.
An amount which the insured elects to self-insure prior to the attachment of the limits of a liability insurance policy. An SIR is generally considerably larger than a deductible and may be utilized to moderate the costs of the purchase of insurance.
That portion of pure risk an insured undertakes to handle on his or her own. A deductible is a form of self-insured retention.
in umbrella liability insurance, the amount (stated in the policy declarations) of a loss the insured assumes in losses where the umbrella policy provides primary coverage - i.e., those losses that are covered under the terms of the umbrella policy but not under those of any underlying policy. Unlike a DEDUCTIBLE, it does not apply to all losses. An alternative term is RETAINED LIMIT. (See DROP DOWN PROVISION)