Construct a reservation of rights

letter for a property damage claim.

(This decision tree is for general guidance only.  

Since the law is always changing and policy language differs,

the advice of an attorney is strongly recommended.)

Has the insured given late notice resulting in prejudice

or has an insured failed to cooperate?

If yes

refer to Conditions

Are there claims for injunctive relief or restitution?

If yes

refer to insuring agreement.

Are some occurrences outside the policy term?

If yes

refer to insuring agreement.

Are some for breach of contract?

If yes

refer to insuring agreement and definition of  "insured contract" 

and the exclusion for contractual l liability.

Are allegations against individuals or organizations other than the named insured?

If yes

refer to insuring agreement and definition of  who is an insured.

Was the damage to  property owned by or in the care of the insured or being worked on by contractors to the insured?

If yes refer to owned property exclusion.

Was there damage to the insured's product or work?

If yes

refer to the product and your-work exclusions.

Was there an absence of physical injury to the property?

If yes

refer to the impaired property exclusion.

Would the insured be liable

if there were no contract?

If no

refer to contractual liability exclusion.

Did the insured fail to perform or delay on a contract?

If yes,

refer to impaired property exclusion.

Does the injury involve pollutants?

If yes

refer to pollution exclusion.

Are there claims also for non-monetary damages?

If yes

refer to insuring agreement.

Is there a failure or defect in the insured's product or work?

If yes

refer to exclusion for  related loss of use and other expenses.  

Was there impaired property?

If yes

refer to exclusion for  related loss of use and other expenses.  

Are punitive damages, treble damages or willful misconduct claimed?

If yes

refer to statutes and public policies of the jurisdiction.

Important: Check for endorsements containing exclusions.