Glossary
Deductible / retention
The amount you pay before coverage responds. E&O typically uses a self-insured retention (SIR) applying to defense and damages; small-firm retentions commonly…
What is deductible / retention?
The amount you pay before coverage responds. E&O typically uses a self-insured retention (SIR) applying to defense and damages; small-firm retentions commonly run $0–$5,000.
Why it matters
Your deductible sets what you pay before coverage responds — and whether it applies to defense costs matters enormously, since defense is where most claim money goes. A slightly higher premium for a lower or defense-outside deductible is often the better economics.