What is Retention (Self-Insured Retention)?
Insurance glossary entry on BeCovered.ai for the term "Retention (Self-Insured Retention)": Dollar amount you pay before a policy layer responds—common in D&O, cyber, and large commercial programs. Scope: plain-language meaning for coverage discussions; confirm definitions on your policy forms.
Dollar amount you pay before a policy layer responds—common in D&O, cyber, and large commercial programs.
Understanding Retention (Self-Insured Retention)
Retention differs from deductible mechanics in some policies—carriers may not pay until retention is satisfied and may not handle smaller claims below retention.
Examples
- Cyber policy $100k retention means first $100k breach costs are yours.
- Captive programs use high retentions to align risk financing.
Common Questions About Retention (Self-Insured Retention)
Retention vs deductible legally?
Terms blur colloquially—read whether defense costs erode retention and whether carrier advances then seeks reimbursement.
Can I finance retention?
Some markets offer retention insurance or LOCs for large programs—consult specialty brokers.
Related Insurance Types
Related Terms
Deductible
The amount you pay out of pocket before your insurance coverage kicks in.
Coverage Limit
The maximum amount your insurance company will pay for a covered claim.
Claim
A formal request to your insurance company for payment or coverage for a loss or policy event.
Premium
The amount you pay to your insurance company for your coverage, typically monthly or annually.