When a policyholder files a claim with their insurer, they expect defense and protection. The expectation goes as far as thinking that the insurer (or insurer’s counsel) actually has the policyholder’s best interest (and only the policyholder’s interest) at heart. With the issuance of a Reservation of Rights letter (ROR) that is not always the case.
An ROR letter is customarily issued when the insurer feels there may be grounds for them (yes, your insurer) to deny the claim. Usually this is a lengthy letter citing various policy provisions that “could” allow the insurer to disclaim coverage (and leave you to fend for yourself). Many times, the gravity of these letters is not appreciated and they are ignored by the policyholder. They shouldn’t be!!
The article “Fine Print” by David Shaneyfelt, a partner with Anderson Kill & Olick, speaks about 10 things you should consider when you review such a letter.
When you file a claim, making sure it is “born right” is critical – generally issues that are “born right” stay right. The ALS Group has a great deal of experience in dealing with ROR letters and can provide guidance on the best way to respond.
Please contact me at [email protected] or 732.395.4251 if you have questions or would like to discuss this very important topic.
