Process & Workflow
Reservation of Rights
A reservation of rights is an insurer's notice that it is handling a claim while reserving the right to later deny coverage or pursue related rights, including recovery.
A reservation-of-rights letter lets an insurer proceed on a claim without waiving positions it may take later. In the recovery context, preserving subrogation rights early (and notifying the parties) helps ensure a later recovery isn't compromised by inaction.
See also