Is retention the same as excess?
In the context of an insurance policy, a retention is also known as an excess.
What is self-insured retention?
Self-insured retention (SIR) is a self-insurance mechanism used by some organizations to manage their insurance costs. Under a liability insurance policy with a SIR provision, the business must cover a set dollar amount before the insurance company begins to pay out claims.
What is the difference between a self-insured retention and a deductible?
The answer to the question what's the difference between a deductible and a self insured retention is that deductibles reduce the amount of insurance available whereas a self insured retention is applied and the limit of insurance is fully available above that amount.
What does self retention mean?
What is Self-Insured Retention? The self-insured retention is a specific dollar amount in a liability insurance policy. Before the insurance policy can take care of any damage, defense or loss, the insured needs to pay this clearly defined amount.
What is self-insured retention?
The self-insured retention is a specific dollar amount in a liability insurance policy. Before the insurance policy can take care of any damage, defense or loss, the insured needs to pay this clearly defined amount.
Are liability deductibles and self-insured retentions the same thing?
Liability deductibles and self-insured retentions are often used in commercial casualty insurance. Both are types of self-insurance. They enable policyholders to retain some of the risk of losses in exchange for a lower premium. While they serve similar purposes, liability deductibles and self-insured retentions (SIRs) are not the same thing.
What is the difference between reinsurance and retention?
Related Terms. Retention. (1) Assumption of risk of loss by means of noninsurance, self-insurance, or deductibles. Retention can be intentional or, when exposures are not identified, unintentional. (2) In reinsurance, the net amount of risk the ceding company keeps for its own account.