The self-insured retention (SIR) is the portion of the loss that the insured pays (retains).  Our policy contains split self-insured retentions that correspond to the Insuring Agreements.

Insuring Agreement A (Management Liability) responds to claims against individual insured persons that are not indemnified by the insured Organization.  The SIR for claims that fall under Insuring Agreement A is $0.

Insuring Agreement B (Organization Indemnification) responds to claims made against individual insureds and indemnifiable by the insured organization.  If the organization is permitted or required by law to indemnify its board members or other individual insureds for liability incurred in the course of carrying their duties to the organization, as is the case in the vast majority of D&O and EPL claims, then the SIR associated with Insuring Agreement B will apply on a per claim basis.    In short, if individual insureds are held financially liable for a claim within the scope of the policy’s coverage, the per claim SIR will apply to the loss, unless the organization is unable or barred from indemnifying those individuals.  In cases where organization indemnification is unavailable, no SIR will apply.

Insuring Agreement C (Organization Liability) responds to claims against the insured organization.  The per claim SIR applies to all claims covered by Insuring Agreement C.

Section VI Retention, further explains how the different Insuring Agreements are triggered and which SIR, or a combination of SIRs, is applied to a claim.

The information contained on this page is meant to serve as a guide for understanding certain policy terms and conditions.  In no way should this information be construed to change the policy language.