How to Respond to a Reservation of Rights Letter
This letter tends to arrive when an insurer agrees to defend you but wants to preserve the argument that it does not have to pay. It is not a denial, and it is not nothing.
Understand what it actually reserves
The letter should identify the specific policy provisions the insurer says may exclude or limit coverage. Vague reservations that gesture at the whole policy are worth pressing on.
Notice the conflict it creates
Your insurer is now paying for your defense while arguing it may not owe you coverage. That tension can affect who controls the defense and, in some circumstances, whether you are entitled to your own counsel at the insurer’s expense.
Respond in writing rather than ignoring it
Acknowledge it, ask for the specific provisions relied on, and reserve your own position. Silence is sometimes treated as acceptance of the framing.
Watch the defense itself for signs of the conflict
Which issues the defense develops, and which it leaves alone, can track the coverage argument rather than your interests. That is worth noticing early, not after a verdict.
Get advice before the underlying case is resolved
The coverage fight and the underlying case interact, and decisions made in one affect the other. This is the point at which independent advice is most useful.
What you can actually sue for depends on your state
These steps apply wherever your policy was issued. Whether you can sue under a statute, what you can recover, and how long you have differ sharply between states — choose yours.
Is your insurer treating you unfairly?
A free, confidential review can tell you whether what happened crosses the line — no cost, no obligation.
General information, not legal advice. Insurance law differs by state and every policy is different.