Reggie Says: SIR vs deductible. What is the difference between the two?
A self insured retention, or SIR, is and amount specified in a liability insurance policy that must be paid by the insured before the insurance policy will respond to a loss. The SIR typically does not erode the limit of liability.
A deductible, on the other hand, is a portion of an insured loss which must be paid by the insured. The carrier will typically pay the entire claim, and then be reimbursed by the insured. Unlike an SIR, a deductible erodes the limit of liability in the insurance policy.