Insurance 101 – Chapter 4 – Volume 22 – The Self Insured Retention

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.

The following video was adapted from my book, “Insurance Claims A Comprehensive Guide” Published by the National Underwriter Company and is available at the Zalma Insurance Claims Library

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The author and publisher disclaim any liability, loss, or risk incurred as a consequence, directly or indirectly, of the use and application of any of the contents of this blog. The information provided is not a substitute for the advice of a competent insurance, legal, or other professional. The Information provided at this site should not be relied on as legal advice. Legal advice cannot be given without full consideration of all relevant information relating to an individual situation.

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