New guidance: A Risk Management Guide to Reservation of Rights
- Published: Friday, 17 February 2017 09:41
Understanding, anticipating and properly responding to reservation of rights letters is integral to risk professionals’ ability to protect their organizations and realize the full value of insurance policies, according to a new RIMS Professional Report, ‘A Risk Management Guide to Reservation of Rights’.
Developed by members of the RIMS Standards and Practices Council, the report guides risk professionals in understanding the potential implications that reservation of rights letters pose. The report explains the background of these notifications and discusses what to consider when deciding if, when and how to respond. It includes examples of reservation of rights and response letters, while exploring issues regarding claim limitations, communications strategies, litigation, and potential conflicts of interest.
“It may be surprising when a claim is reported, and an insurer sends the policyholder a reservation of rights letter, potentially limiting coverage,” said RIMS Vice President of Strategic Initiatives Carol Fox. “Knowledgeable and prepared risk professionals can make all the difference in getting the full value from an organization’s insurance policies.”
The new report is available in RIMS Risk Knowledge library at www.RIMS.org/RiskKnowledge (registration required).