self insurance retention definition
A self-insured retention is the amount of any liability loss (meaning a loss for which you are liable for bodily injury or damage to another) that you must pay to the injured third party before the insurance company pays. Typically, only insurance policies covering businesses require self-insured retentions.
WE A NSWER: A self-insured retention, also widely known under its abbreviation SIR, refers to the amount that an insured has to pay in order for an insurance policy to kick in. In its function it is similar to an insurance deductible although each of the two concepts has its own distinguishing features.