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Category Archives: Reservation of Rights

When An Insurer’s Reservation of Rights Actually Reserves Nothing

torn paper over are you covered  As often as not, when a liability insurance company agrees to assume a policyholder’s defense against claims in a lawsuit, the carrier will issue a “reservation of rights” letter that says to the insured, in effect: “While we are protecting you for the time being, we might later decide that there’s no coverage under your policy for this lawsuit.  And if we do reach such a conclusion: Sayonara.”  Recently, the South Carolina Supreme Court held that, if carriers do not write those reservation of rights letters carefully and unambiguously, any later denial of coverage might be ineffective. Read More

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