What is a self-insured retention (SIR)?

A self-insured retention (SIR) is an amount of money that an insurance policyholder agrees to pay before the insurance coverage kicks in. This is commonly used by larger businesses and organizations that have a high level of risk. In North Carolina, as in many other states, an SIR can be used as part of an insurance policy for business, government, or private organizations. It is important to understand that this type of policy does not provide coverage for any losses that are not explicitly listed in the policy. For example, if a business has a policy with a self-insured retention of $10,000, the business would be responsible for any losses up to $10,000 before the insurance would cover it. This is important to remember because it can help to reduce the cost of the insurance policy. Self-insured retention policies are an important tool for businesses in North Carolina and around the country to help manage their risk and cost of insurance. Understanding the role of an SIR and how it can work for the specific needs of a business and organization can help to ensure that the most appropriate and cost-effective coverage is in place.

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What is a self-insured retention (SIR)?

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