What is a self-insured retention (SIR)?

A self-insured retention (SIR) is a term used in insurance coverage that is essentially an agreement between the insured and the insurer. In this agreement, the insured agrees to bear a certain level of financial risk in the event of a covered claim. This is often done through a deductible, which is an amount of money that the insured agrees to pay out-of-pocket before any insurance coverage applies. In Florida, an SIR is applied to any claim that exceeds a certain monetary threshold and requires the insured to pay a certain amount before the insurance company will provide coverage. This amount will usually be stated in the policy, so it’s important to understand what that amount is in order to be prepared in the event of a claim. The idea behind SIR is that it reduces the insurer’s risk by requiring the insured to bear some of the costs of a claim. In addition, the cost of an SIR is typically lower than a typical insurance policy premium, which can be beneficial for the insured because it reduces the cost of coverage.

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What is a self-insured retention (SIR)?

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