The term “Reservation of Rights” is often heard in the context of auto insurance claims and coverage. This term can be confusing, and can often lead to frustrations for those trying to make a property and/or injury claim against an insurance carrier for damages sustained in a motor vehicle collision.
Simply put, the term “Reservation of Rights” means that the insurance company is notifying the claimant and their insured that there may not be coverage for the claim, though there in an active insurance policy. Reservation of Rights letters should be sent by the insurance company as soon as there are questions as to applicable coverage. At a minimum, the letter should include the following information:
- The relevant policy language that Is applicable to the claim in question
- How the relevant policy language is applicable to the claim being made
- The insurer’s position regarding coverage for claim in question
When the insurance company invokes this right, it is not outright denying the claim-rather it is invoking its right to conduct an investigation into the claim to figure out what happened so it can be determined if the insurance policy in question is applicable. There are a number of reasons an insurance company can invoke the defense of Reservation of Rights. Some of the most common include the following:
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- Some of the allegations in the claim do not fall within the scope of the coverage the policy affords
- There is documented policy exclusion in the policy language that applies to the claim being made
- Some of the damages caused are not covered by the insurance policy in question
- There has been a breach by the insured party which creates an instance of non-coverage including the insured not communicating with their insurance company to verify the details of the claim and their involvement.
Part of this investigation often includes that the insurance company be able to talk to the driver they insure. Many times when the insurance company utilizes the defense of “Reservation of Rights”, it is because they are unable to get a hold of the driver it insures. When this occurs, the insurance company is within its right to not afford coverage until they are able to speak with the insured which can often be a point of frustration for an injured party attempting to make a claim. Rest assured, there are still options to force coverage, many of which can be explored with an experienced personal injury attorney.
If you or a loved one is filing a new claim with an insurance company and have been told there is no coverage on the basis of a Reservation of Rights Defense, contact Herrman & Herrman, P.L.L.C., for a free consultation.
*This blog is for informational purposes only and is not intended to, and should not be construed as legal advice.
CONTACT HERRMAN & HERRMAN IF YOU HAVE BEEN INJURED IN ANY OF THE FOLLOWING TYPES OF ACCIDENTS:
We can help you if you have been harmed by the following:
- Car accidents – Our lawyers have extensive experience handling car accident cases. We will work to identify the party or parties at fault for the crash and build a case to demonstrate persuasively how the parties caused the accident and your injuries. We will seek fair and full compensation through a negotiated settlement or at trial if necessary.
- Truck accidents – Thousands of large commercial trucks travel the roads of Texas every single day. Unfortunately, careless truck drivers and trucking companies disregarding safety put innocent people at risk of serious injuries. If you’ve been injured in a truck accident, let our experienced Texas personal injury lawyers stand up to the trucking companies and insurers on your behalf.
- Motorcycle accidents – Motorcycle riders often suffer grievous injuries in crashes caused by other motorists. Too many motorcycle accidents in Corpus Christi are caused by careless drivers who don’t look for motorcycle riders or violate their right of way. Our personal injury lawyers will work to cut through the bias and stigma against motorcycle riders. Our goal is to seek the financial compensation that you’ll need to recover from a serious motorcycle accident and injuries such as bone fractures, road rash, or traumatic brain injury.
- Product liability – Product manufacturers have a legal obligation to make products that are safe for their intended uses and to warn consumers of any risks that may come with the product. When products have design or manufacturing defects or undisclosed dangers, the product manufacturer may be legally responsible for injuries suffered by consumers. Our attorneys can help you evaluate whether you have a valid product liability claim.
- Brain injury – Brain injuries can leave accident victims with disabilities that leave them unable to work or perform many tasks of daily living. Seeking compensation for a brain injury in an accident often proves incredibly complex. The brain injury survivor may seek compensation for anticipated future medical care and the medical care already provided. Our personal injury lawyers can help you through the difficult recovery process following a brain injury and will fight to make sure you have the resources you need.
- Spinal injury – Spinal cord injuries could cost millions of dollars of care over the course of the victim’s lifetime, especially when those injuries result in partial or complete paralysis, such as paraplegia or quadriplegia. If you or your loved one has suffered a spinal cord injury, you deserve compassionate legal representation. Our attorney can help you determine whether you may be entitled to claim compensation for your injury and expenses related to living with the disability, such as making a home more accessible.
- Wrongful death – If you have lost a loved one due to the negligent or reckless actions of another party, your family deserves to seek accountability and compensation from those at fault for the wrongful death. Our caring and dedicated attorneys can help guide you and your family through this difficult and painful time and seek justice for your loved one.
