Self-insurance retention / SIR

Self-retention is the percentage of risk that a person holds for his own account without being insured or reassured. Self-retention is a sum specified in the liability insurance policy that must be paid by the insured before the insurance policy pays any loss in this sense. Legal fees are paid to defend him in court and the awarded compensation is paid until the limit of retention has been exhausted. After the retention limit has been exhausted, the insurance company begins to pay up to the maximum liability of the insurer and the self-retention may be called non-insurance under the terms of the document.

Retention of self-insurance may be in the form of deductible or non-insurance insurance is not to take any financial actions in advance to meet the expected loss means there is no insurance and no self-sustainment insurance is a specific amount deducted by the insurance company from the claim if the claim is less than the endurance, Compensation does not exist from the foundation.

 Umbrella insurance or umbrella policy is a liability insurance policy that pays only losses greater than a specified amount under underlying policies / basic policies. However, it may also act as an initial (basic) insurance to cover losses The two types of umbrella documents are the personal umbrella insurance policy (PUP) issued to individuals and the umbrella policies for commercial liability insurance issued to corporations and corporations.

The umbrella document pays only the excess liability that exceeds the limits of the underlying documents. In this case, it acts as a document that exceeds the excess coverage or pays the losses not covered under the basic documents up to the limit of the umbrella document. If the compensation exceeds the ceiling, the insured becomes responsible And in this case act as a basic document means the umbrella document has two functions are as follows:

1. Cover is granted when infrastructure covers are exhausted, thus covering catastrophic liability loss exposures. For example, imagine that a car accident resulted in multiple bodily injuries that exceed the liability limit of the vehicle document.

2. The insured shall protect against losses not covered by the underlying documents, provided that such losses are covered by the umbrella document, since the umbrella document has multiple coverings covering the damage to property, bodily injury and personal injury such as libel and defamation False imprisonment, assault on false land, false eviction, etc. Third-party damage The umbrella document requires that the underlying documents are in force and if not in force, the liability of the insurer of the umbrella does not change as if the underlying documents were in force.

 The awning document contains self-insured retention and is applied only when the umbrella document acts as a basic document but does not apply when the umbrella document acts as a document that exceeds the loss.

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