Reservation Of Rights Letter Explained

Reservation Of Rights Letter Explained

A reservation of rights letter is a formal notice to an insurance company or policyholder that claims have not yet been resolved and that the insurer’s legal liability to pay any additional amounts may be limited by law. In general, they are used by insurance companies when they believe there may be a dispute over coverage or policy limits. Reservation of rights letters is also sometimes sent by attorneys when representing policyholders in litigation against their insurers.

A Reservation of Rights Letter may also ask you to sign a release or waiver that says that by providing your information in writing (by signing), you agree not to sue for injuries that may have resulted from an accident or other incident. This letter often comes at the same time as another letter asking for medical records and bills associated with any injuries sustained after an accident for them to evaluate whether they need more information before making any decisions regarding whether they will pay out claims made against them by their policyholders.

Do I Have To Do Anything In Response To The ROR Letter?

When you receive a reservation of rights letter, you should contact an attorney. The insurance company is not offering to pay any money at this point and does not want to resolve your claim with you directly. If you sign the ROR form or send them any money, it will be difficult for your attorney to help restore your claim later on.

Likewise, do not make any statements that may be used against you in court (like admitting fault) or offer information that could harm your case if they do decide to settle with their own internal investigation later on.

How Can I Protect Myself?

There are several things you can do to protect yourself and your rights:

  • Get a copy of the policy and ask for details on what’s covered. The insurance company will often provide this information to you even before they send out their adjuster.
  • Get a copy of the accident report so that you know exactly what happened at the scene of the accident. This will allow you to understand why certain decisions were made and who was responsible.
  • If possible, get a copy of any correspondence between the insurance company and its attorney pertaining to your case (like an “I” letter). These letters show that one party or another is seeking advice from counsel regarding whether or not they have a case against another party involved in an accident — which means if they don’t hire counsel but still write such letters, they might be trying something sneaky!

Consult An Attorney Who Has Experience Dealing With These Situations

If you receive a reservation of rights letter from your insurance company’s attorney, don’t panic. It’s simply the insurer making it clear that it does not agree with how you handled the situation and that it reserves its right to file suit against you at a later date. This is pretty much standard practice for many insurance companies, but it doesn’t mean that filing suit is imminent. In fact, parties often settle cases without going to court. Hire an experienced attorney who has dealt with these kinds of situations before. They can help negotiate a settlement on your behalf and possibly get a better deal than what would have been offered had they gone through with filing suit over small claims court proceedings (which are always simpler than real lawsuits).


A reservation of rights letter is a very important document, but it can also be confusing and intimidating. If you have received one of these letters, speak with an attorney who understands this type of situation and has experience dealing with them.


    Notes (optional): "Please feel free to address anything else (your title, number of buildings, number of stories, number of units, etc.)"