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Reasons to mediate an insurance dispute

On Behalf of | Jan 31, 2023 | Insurance Law

When insurance providers and those who have had their claims denied are at odds, they usually spend a lot of time trying to reach an agreement before going to court. If they end up in trial, both sides have spent significant resources, time and money.

There is another way to address these disputes. Mediation is a highly effective form of alternative dispute resolution (ADR) that provides an alternative to lengthy, adversarial procedures.

While mediation is not appropriate for every case, and it is critical to evaluate whether yours is before deciding, there are many reasons why mediating an insurance dispute is worth considering, such as:

  • Mediation is a private process. All matters discussed between the parties do not become public.
  • The mediator is an impartial third-party trained in facilitating a productive conversation to reach an agreement that benefits both parties.
  • The parties choose the mediator and play a more prominent role in solving their dispute, allowing each party to offer creative solutions that the other party may not have thought of.
  • Mediation is not adversarial. It is a way to solve problems in a structured environment. The mediator is there to assist with helpful tools to help the parties stay on track.
  • Mediation is flexible in format. In some mediations, everyone sits around the table in the same room. In other mediations, each party has its own physical or virtual space.
  • Mediation does not preclude the parties from having legal representation. It is prevalent for parties to attend mediation with their attorneys.

Disagreements are inevitable, but how people and businesses deal with those disagreements is within their control. Mediation provides a cost-effective, less time-consuming way of solving disputes.

In many cases, mediation is an excellent alternative to litigation and it can provide both parties with an ideal solution that takes into account everyone’s needs and wants.