Clients frequently ask Cellai Law Offices, P.C. what happens when the get sued (either in a direct claim or in a counterclaim), they turn the lawsuit over to their insurer to defendant them and the insurer states that they will defend the client/insured “under a reservation of rights.” When an insurer defends under a reservation of rights, what a defense under a reservation of rights really means, in essence, is that the insurer will defend the claim at no cost to the insured (other than a deducible or possibly a self insured limit) but if an adverse Judgment enters against the client, the insurer “reserves the right” to fight/dispute/argue with the insured later over whether the loss is a covered loss. Put another way, if an adverse judgment enters against the insured, the insurer reserves the right to bring its dispute with the insured to a court on a later date over whether they must indemnify or pay the Judgment that entered against the insured.

According to the Massachusetts caselaw, when an insurer defends under a reservation of rights, the insured has the right to terminate the lawyers hired by the insurance company (lawyers that are greatly controlled by the insurer) and hire counsel of their choice at the insurer’s expense. Cellai Law Offices, P.C. has defended many clients when the insurer issued a “reservation of rights” letter to its insured and agrees to defend the case under a “reservation of rights.”

When the insured/client wants to use Cellai Law Offices, P.C. to defend its interests in the lawsuit or counterclaim as a result of the insurer’s reservation of rights, clients generally receive a more thorough and rigorous defense because a defense by Cellai Law Offices, P.C. is unhindered by the self-interest of the insurer because Cellai Law Offices, P.C. does not have a relationship with the insurers.


Call Cellai Law Office, P.C. to get a thorough and rigorous defense.