Many Lakewood, CO residents get umbrella insurance policies to protect themselves against liability lawsuits further. These policies often come with terms that aren’t in some other, more common insurance policies. One example is self-insured retention.

Self-Insured Retentions in Umbrella Policies

Self-insured retention refers to the amount of loss that a policyholder must bear before their umbrella insurance policy begins to pay. It’s the portion of a claim you’re responsible for covering out of pocket before your insurance coverage kicks in. 

This differs from a standard insurance policy deductible, which is typically a smaller amount and applies to each claim. A self-insured retention is generally larger, and a single retention may apply to a series of claims filed against the policy.

Self-Insured Retention in Action

For instance, if a Lakewood, CO business has an umbrella policy with a SIR of $10,000, it means that the business must pay the first $10,000 of any claim or series of related claims before the umbrella policy provides coverage. 

The retention amount can vary greatly depending on the policy and the insurer. This can raise questions about how umbrella coverage applies in different scenarios, especially when it comes to professional liability.

Get Help With an Umbrella Insurance Policy

For a detailed understanding of how self-insured retention might affect your umbrella insurance policy, contact us at Premier Group Insurance. Our team of agents at Premier Group Insurance has helped many residents get the liability coverage they need. We’ll walk you through self-insured retentions and all other facets of umbrella insurance policies to get a policy that’ll provide the protections you need.