A Reservation of Rights Protects an Insurer But Should Be a Warning to an Insured Do the Same?

If a business is sued, it should immediately notify all of its potential liability carriers, primary and excess. It is better to err on the side of being over inclusive in notifying the various insurance carriers then end up having coverage denied later by a carrier that would have covered the loss but for its failure to receive prompt notice of the claim. After receiving notice of a claim, the insurance claim will respond in one of three ways (typically).

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