Chapter 14, A. SIR

• Jurisdiction: United States

A. SIR

Self-insured retention (SIR) is the amount of risk the insured has retained or kept to cover its own liability. It is also referred to as a "retained limit." The insured is obligated to pay for claims or losses that fall within the specified level of retention. One or more insurance companies will provide specific layers of coverage above the SIR level. The insured can reduce the cost of premiums and control the handling of claims by maintaining an SIR. The amount of the SIR can vary greatly. Major...