Reservation of Rights Letter Template

[Insurance Company Name]
[Claims Department / Coverage Department]
[Address]
[City, State, ZIP Code]
[Phone Number]
[Email Address]

Date: [Date]

To: [Insured / Policyholder Name]
[Address]
[City, State, ZIP Code]

Re: Reservation of Rights
Policy Number: [Policy Number]
Claim Number: [Claim Number]
Date of Loss / Incident: [Date]
Underlying Matter: [Case Name / Claim Description]

Dear [Name]:

1. Purpose of This Letter

We write regarding the above-referenced claim, lawsuit, demand, or occurrence.

Based on the information currently available, there may be questions concerning whether some or all of the matters presented are covered under the policy identified above. Accordingly, [Insurance Company Name] is proceeding under a full reservation of rights.

2. Claim Information

The claim or matter currently appears to involve the following:

[Brief description of incident, allegations, demand, lawsuit, or loss]

Date notice was received: [Date]

Current status of matter:

☐ claim investigation
☐ pre-suit demand
☐ lawsuit filed
☐ defense requested
☐ other: [Describe]

3. Information Known at This Time

At present, the information available to us includes the following:

[Brief summary of reported facts]

This summary is based only on the information currently available and may change as additional facts are developed.

4. Potential Coverage Issues

Coverage may be affected by one or more of the following issues:

☐ whether the alleged loss falls within the policy’s insuring agreement
☐ whether an exclusion may apply
☐ whether a condition precedent to coverage has been satisfied
☐ whether timely notice was provided
☐ whether the alleged damages fall outside covered loss
☐ whether some claims may be covered and others not covered
☐ other issue: [Describe]

Additional coverage concerns:

[Insert details]

5. Relevant Policy Provisions

Without limiting any rights, we direct your attention to the following policy provisions, endorsements, exclusions, definitions, and conditions that may be relevant:

[Insuring agreement provision]
[Exclusion provision]
[Condition provision]
[Definition provision]
[Endorsement provision]

Additional policy language, if any:

[Insert details]

6. Defense Position, if Applicable

At this time, [Insurance Company Name]:

☐ is investigating the matter and has not yet made a final coverage determination
☐ will provide a defense subject to this reservation of rights
☐ will participate in the defense subject to this reservation of rights
☐ is reviewing whether a defense obligation exists
☐ other: [Describe]

If a defense is being provided, that defense is offered subject to all rights under the policy and applicable law, including the right to later deny coverage in whole or in part if the facts, allegations, policy language, or law support that position.

7. No Waiver

Nothing done by [Insurance Company Name], including investigation, communications, claim handling, settlement discussions, appointment of counsel, payment of defense costs, or any other act, shall be construed as a waiver of any right, defense, limitation, exclusion, or policy condition.

[Insurance Company Name] expressly reserves all rights under the policy and applicable law.

8. Additional Information Requested

To complete our evaluation, please provide the following, if applicable:

[incident report]
[pleadings or demand letter]
[contracts]
[photos or videos]
[witness information]
[medical or repair records]
[other documents]

Requested deadline for response: [Date]

9. Independent Counsel / Conflict Notice, if Applicable

Because a reservation of rights may, in some circumstances, create a conflict of interest, you may wish to consult personal counsel regarding your rights and obligations.

If independent counsel rights may apply under the law governing this claim, those rights shall be addressed as follows:

[Insert details]

10. Reservation of Additional Rights

This letter is based on the information presently known and is not intended to be exhaustive. [Insurance Company Name] reserves the right to rely on any other policy terms, endorsements, exclusions, conditions, facts, defenses, or legal positions that may now exist or later become known.

11. Response Requested

If you believe any of the facts stated in this letter are inaccurate or incomplete, please notify us immediately in writing.

If you have documents or information you believe affect coverage, please provide them promptly.

12. Closing

Please treat this letter as formal notice that [Insurance Company Name] reserves all rights with respect to this matter.

Sincerely,

Signature: __________________________
Name: [Claims Representative / Coverage Counsel / Adjuster]
Title: [Title]
Insurance Company: [Company Name]

13. Copy Notice

Copy to:

[Defense Counsel]
[Broker / Agent]
[Coverage Counsel]
[Other Recipient]