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Self-Insured Retention (S.I.R.)

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For many corporations, the use of a self-insured retention or a captive insurance company is an essential part of their risk management strategy. While these strategies provide insureds with proven benefits, there is still a need for related administration and services. Fronting services combine fronting with established value underwriting, quality claims management and risk control services to help minimize a corporation’s total cost.


Companies wishing to retain and fund losses via their cash flow while reducing risk transfer costs. Coverage can be tailored to meet the insured’s needs.

Policy highlights


  • Singular point-of-contact for all fronted coverage lines and administration (including globally admitted policy issuance)
  • Flexible policy limits (dependent on type and amount of collateral)
  • Standalone fronting placements
  • Risk transfer placements, where needed coordinated with other Liberty units
  • Underwriting expertise, including policy form review and pricing guidance
  • Industry standard and/or manuscript policy forms
  • Access to over 90 countries via Liberty Mutual Group or strategic partners
  • Claims administration by insured considered subject to acceptable experience levels and appropriate third party administrator/legal counsel availability


  • Cash and/or Letter of Credit
  • Amount and type required based on the specific characteristics of the fronting placement

Fronting fee

  • Negotiable (subject to $10,000 minimum), plus applicable premium taxes, boards & bureau charges
  • Claims administration fee to be charged in addition to fronting fee where Liberty administering claims


Dependent on type and amount of collateral provided

Informational requirements for Fronted program

  • Full underwriting submission (including loss history)
  • Proposed policy and other related contracts
  • Audited financials for insured (or entity providing indemnity)
  • Other to be advised, as specific to fronting program under consideration

The Liberty difference

  • Servicing the Canadian market since 1996, providing fronting and other alternative risk management solutions
  • Experience in numerous industry sectors, including petro-chemical and manufacturing
  • Seamless experience for brokers and insures via a single point of contact
  • Access to services in over 90 countries via Liberty Mutual Group offices, as well as its strategic partners

Why Liberty?

  • • A.M. Best Financial Strength Rating ‘A’ (Excellent); S&P rating of ‘A’ (Strong)
  • • Efficient cross-border capabilities
  • • Established Canadian market presence for over 25 years
  • • Access to Liberty Mutual’s extensive international network
  • • Local underwriting authority
  • • Local risk engineering and risk control experts
  • • In-house claims service team