The Self Insured Retention
An additional method used to require an insured to participate in the loss and, thereby prove the insured’s interest in loss prevention is the Self-Insured Retention (SIR).
When the SIR is used the insured always participates because he or she must first pay the SIR before the insurer has any obligation to pay. Unlike the Lloyd’s deductible quoted above, in this situation, if the loss is large enough the insured can collect up to the policy limit.
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