Glossary

What is Deductible vs. SIR?

While both require out-of-pocket payment by the insured, deductibles and SIRs differ in who controls the claim and when the insurer's obligation begins.

Full Definition

Deductibles and Self-Insured Retentions (SIRs) both require the insured to bear a portion of the loss, but they operate differently. With a deductible, the insurer manages the claim from the first dollar, pays the claim, and then collects the deductible from the insured. With an SIR, the insured manages and pays the claim until the SIR amount is reached, at which point the insurer takes over defense and indemnity. SIRs give the insured more control over small claims but also more responsibility. The distinction matters for additional insureds — they may not be required to satisfy the named insured's SIR.

Related Terms

Aggregate Limit

Self-Insured Retention (SIR)

Explore More

Related Coverage & Services

Directors & Officers (D&O) Insurance

D&O insurance protects corporate directors and officers from personal liability arising from management decisions.

General Liability Insurance

General liability insurance covers third-party bodily injury, property damage, and personal/advertising injury claims.

Aggregate Limit

The maximum total amount an insurance policy will pay for all covered claims during the policy period.

Self-Insured Retention (SIR)

The amount of loss the insured must pay before the insurance policy begins to respond, similar to but legally distinct from a deductible.

Business Insurance

Start Here

Have Questions About Deductible vs. SIR?

Our advisory team can explain how this concept applies to your specific situation and help you make informed insurance decisions.

Call (800) 755-3469

Discovery

We sit down with you and ask the questions most brokers never do — your assets, your family, your business, your goals.

Strategy

We map your full risk picture and design a coordinated program that strengthens coverage and reduces your total cost of risk.

Execution

We place your program with elite carriers and handle every detail — applications, underwriting, and transitions.

Ongoing Optimization

Your advisor reviews your program as your life evolves — new assets, new ventures, new exposures — so coverage never falls behind.