What is a Reservation of Rights Letter and what should you do if you receive one from your insurance company? A Reservation of Rights letter is serious business, and you should contact the insurance coverage attorneys at the Watkins Firm to review your case. You are exposed to serious risk and should be concerned about the intentions of your own insurance company. A Reservation of Rights letter literally means that your insurance company reserves the right to back out of covering you down the road. This could expose you, personally, to financial exposure for the damages or liability your insurance coverage should provide.
The insurance coverage attorneys at the Watkins Firm will review your policy, the facts surrounding your claim and the Reservation of Rights Letter to determine your potential legal and financial exposure and potential risks. California law provides the defendant in an insurance dispute the right to have their own independent counsel or Cumis Counsel who is separate from the attorneys representing the insurance company. There is an inherent conflict of interest for the insurance company attorneys who owe their primary allegiance to the policy itself, not you. Your Cumis Counsel watches out for your personal interests and works to ensure that the insurance company upholds the letter of the policy coverage, and does not attempt to settle the underlying lawsuit by throwing you, the insured, “under the bus.” When do the actions of an insurance company rise to the level of insurance bad faith? How would you know?
Our attorneys have decades of experience with disputes and trial work, and have a strong record of success resolving cases and protecting the rights of our clients. The Reservation of Rights Letter tells you, the insured, that your own insurance company is looking for a reason to back out of their responsibility to defend you under the policy.
If you have received a Reservation of Rights Letter or are have questions about the coverage provided under an insurance policy we invite you to call for a free consultation at 858-535-1511.