Insurance retention

**Insurance Retention**

Insurance retention refers to the portion of risk or liability that an insured party agrees to keep or retain rather than transferring it to an insurance company. It is the amount of loss or expense that the policyholder is responsible for before the insurance coverage kicks in. Understanding insurance retention helps individuals and businesses effectively manage their risk exposure and insurance costs. This term is often associated with concepts like deductibles, self-insurance, and risk management strategies.