Glossary
Self-insured retention (SIR)
The amount you pay on a claim before the carrier’s obligations begin — E&O’s version of a deductible, typically applying to defense…
What is self-insured retention (SIR)?
The amount you pay on a claim before the carrier’s obligations begin — E&O’s version of a deductible, typically applying to defense and damages alike.
Why it matters
An SIR works like a deductible you manage yourself — you handle and pay claims up to the retention before the carrier steps in. Common on larger firms’ policies. Understand whether defense costs erode it and how claims must be reported while inside it.