Also known as: Self-Insured Retention · SIR · Deductible
Deductible and retention are often used interchangeably — both refer to the amount your company pays out of pocket before the insurer covers the rest.
In most startup and tech insurance policies, deductible and retention mean the same thing: the dollar amount you absorb on a claim before your insurer pays. You will see both words on quotes and policies — carriers use them interchangeably depending on the line of coverage. For example, a $10,000 deductible on a Cyber policy and a $10,000 retention on a D&O policy work the same way in practice. Higher deductibles/retentions lower your premium but increase your out-of-pocket exposure when a claim occurs.
For Tech E&O and Cyber, typical deductibles range from $2,500–$10,000 for early-stage startups. D&O policies often have $0–$25,000 retentions for Side A and higher retentions for Side B/C. GL deductibles are usually $0–$1,000. Higher deductibles reduce premiums but increase your out-of-pocket exposure.
Yes — in most startup and tech insurance policies, deductible and retention are used as synonyms. Both refer to the amount you pay out of pocket before the insurer covers the rest. You may see either term on your quote or policy depending on the carrier and line of coverage, but the practical meaning is the same.
Choosing a higher deductible or retention lowers your premium because you are agreeing to absorb more of the first-dollar risk. For example, raising your Cyber deductible from $2,500 to $10,000 can reduce your annual premium by 10–20%. The tradeoff is higher out-of-pocket cost if a claim occurs, so choose a retention you can comfortably fund.
Definitions are educational and may be modified by your specific policy language, endorsements, and state rules. For regulatory guidance, refer to the California Department of Insurance or the NAIC.
Last updated: July 2026.