Legal Definitions - SIR

Definition: SIR is an abbreviation that can stand for two different things:

1. Self-Insured Retention: This refers to a type of insurance policy where the insured party agrees to pay a certain amount of money out of pocket before the insurance company starts covering the costs. For example, if a business has a self-insured retention of $10,000 and experiences a loss of $15,000, they would pay the first $10,000 and the insurance company would cover the remaining $5,000.
2. Statutory Invention Registration: This is a type of patent application that allows inventors to publicly disclose their invention without actually applying for a patent. This can be useful for inventors who want to protect their idea but don't have the resources to pursue a full patent application.

Examples:

• A construction company has a self-insured retention of $25,000 for their liability insurance policy. If a worker is injured on the job and the total cost of the claim is $40,000, the company would pay the first $25,000 and the insurance company would cover the remaining $15,000.
• An inventor has come up with a new type of solar panel that they want to protect. Instead of filing a full patent application, they decide to use a statutory invention registration to publicly disclose their invention and establish their ownership of the idea.

These examples illustrate the two different meanings of SIR. In the first example, SIR refers to a type of insurance policy that requires the insured party to pay a certain amount before the insurance company starts covering costs. In the second example, SIR refers to a type of patent application that allows inventors to protect their ideas without going through the full patent process.