Reservation of Rights
/ˌrɛzərˈveɪʃən ʌv raɪts/
Definitions
- (n.) A declaration by a party preserving certain rights despite performing an act or entering into an agreement.
The insurer issued a reservation of rights letter to avoid waiver of coverage.
- (n.) A clause in a contract or agreement that retains certain rights for one party.
The lease included a reservation of rights allowing the landlord to enter the premises for inspections.
Related terms
See also
Commentary
A reservation of rights is frequently used by insurers to notify insureds that coverage is not waived despite investigating a claim; precise wording is critical to avoid unintended waiver.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.