What should an insured do to retain certain risks instead of transferring them?

To retain certain risks instead of transferring them, an insured should accept the possibility of incurring a loss. This means that the insured acknowledges that they are choosing not to transfer the risk to an insurer, thereby becoming responsible for any financial consequences resulting from that risk. This approach can be a deliberate financial decision, often made when the expected costs of potential losses are outweighed by the benefits of not paying premiums for extensive coverage.

Adjusting coverage limits or increasing premium payments can be strategies for managing risks, but they do not directly relate to the concept of retaining risks. Filing a claim for every insignificant damage goes against the idea of risk retention, as it reflects a desire to transfer risks to the insurer rather than accepting responsibility for smaller losses. Thus, the choice to acknowledge and accept potential losses is the key action that defines risk retention.