Definitions for "Self-Insured Retention"
In an umbrella policy, this is a deductible that applies to liability losses not covered by other underlying policies.
Similar to a deductible except that until the SIR is exhausted the insured will generally be responsible for performing the loss adjustment functions that would otherwise be undertaken by an insurance company. For umbrella liability, the SIR is the amount the insured is obligated to pay for claims when there is no underlying insurance.
(See Retention)