What is a self-insured retention (SIR)?

A self-insured retention (SIR) is a type of insurance coverage that is available to businesses that are not protected by a traditional insurance policy. In other words, it is a type of insurance coverage that a business pays for out of its own pocket, rather than through an outside insurer. In Mississippi, SIRs are designed to provide protection for businesses against losses caused by claims against them that exceed the limits of their insurance policy. SIRs essentially act as a deductible for businesses that have their losses covered by an insurance policy. In this way, they reduce the amount of money that a business might have to pay out of pocket in the event of a claim. Businesses in Mississippi typically have to pay an initial sum (the SIR) when they purchase insurance coverage, and then the insurer covers the rest of the cost up to the policy limits. The law in Mississippi requires that businesses carry a minimum SIR, and the amount of that minimum varies from business to business. The law also requires that businesses provide a certain amount of financial proof that they have enough money to cover their SIR before they can purchase an insurance policy. This is done in order to ensure that businesses will be able to pay their SIR if a claim is filed against them.

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What is a self-insured retention (SIR)?

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