Claims & Disputes
Reservation of Rights Letter
A Reservation of Rights (ROR) letter allows an insurer to handle a claim without waiving potential coverage defenses, signaling that one or more policy provisions may limit or bar payment.
Last reviewed: May 2026 · Editorial methodology
Definition
A Reservation of Rights (ROR) letter is a formal notice sent by an insurance company to a policyholder informing them that the insurer will investigate, defend, or advance payments on a claim while explicitly preserving its right to later deny coverage based on specific policy exclusions, conditions, or misrepresentations. ROR letters are common in liability claims where coverage questions exist—such as when a lawsuit alleges both covered and uncovered acts—but are also used in property claims involving questions of policy applicability. The letter must identify the specific policy provisions that may limit coverage; a vague ROR letter can be challenged as ineffective in many states. Receipt of an ROR letter is a serious signal that the policyholder should consult an insurance attorney, because it often precedes a coverage dispute or denial. In some jurisdictions—particularly in liability insurance—when an insurer defends under an ROR, the insured may have the right to retain independent counsel (known as Cumis counsel in California) at the insurer's expense. Failure to send a timely ROR letter can result in the insurer waiving certain coverage defenses under the doctrine of estoppel.
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Cover Forge USA Editorial Team
Editorial Lead
This article was researched and written by the Cover Forge USA editorial team against federal sources (NAIC, CMS, FEMA, DOL, SSA, state DOIs) and standard policy forms. Bylines organize content by topic — they do not assert individual licensure. See our editorial-policy for details.
Reviewed 2026-06-14
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