This article focuses on (1) the definition of the SIR, in general terms, as used with reference to liability insurance; (2) its common uses; (3) how this concept generally differs in definition and application from a deductible; (4) how the SIR compares to the retained limit commonly used with commercial umbrella liability policies; (5) problem areas associated with its use; and (6) some suggestions to avoid or reduce some of its problems.
