Reservation of Rights
A letter from your insurer saying it will handle or defend a claim while keeping the right to raise coverage issues later. It is common and is not the same as a denial.
What it means for your firm
Insurers send these when part of a claim may fall outside the policy, or when they need more facts before deciding. The letter usually lists the policy provisions the insurer is relying on.
Read it carefully and ask your agent what it means for you. In some situations, state law gives you rights such as independent counsel; that depends on the state and the facts.
Guides that use it
Articles that explain it
General definition for education only. It is not an interpretation of any policy or contract, and it is not legal advice. The wording of your own policy and contract controls. Policies and definitions vary by insurance company.
Tell Us About Your Firm. We’ll Tell You What We See.
Starting out or renewing, with a policy in hand or not. If something is worth discussing, we’ll call. If not, we’ll say so.