What is the difference between a deductible and SIR?
An SIR differs from a true deductible in at least two important ways. Most importantly, a liability policys limit stacks on top of an SIR while the amount of liability insurance deductible is subtracted from the policys limit. As contrasted with its responsibility under a deductible, the insurer is not obligated to pay the SIR amount and then seek reimbursement from the insured; the insured pays the SIR directly to the claimant.
