What does Risk Retention mean? Read on to discover the definition & meaning of the term Risk Retention - to help you better understand the language used in insurance policies.
Risk retention is a company's decision to take responsibility for a particular risk it faces, as opposed to transferring the risk over to an insurance company. Companies often retain risks when they believe that the cost of doing so is less then the cost of fully or partially insuring against it.
We hope the you have a better understanding of the meaning of Risk Retention.