What is the definition of Arbitration?

Arbitration refers to the process by which a third party helps to resolve a dispute between the insurance company and the insured.

Sometimes, when an insured person makes a claim against losses towards himself or his property (if these are insured), the insurance company does not always agree on the validity of the claim. Or, the insured may not agree on the amount of benefits/claims payment given by the insurance company. Thus, an impartial third party is called upon to make a finding or to help both parties to come to an amicable agreement.

Arbitration is often non-binding, meaning you can still go to court if you are unsatisfied with the result. However, the consideration would be the crippling costs of suing someone, as well as the time it will take you, time that you can use for other more profitable activities.

• Businessowners Policy / BOP
• Competitive State Fund
• Excess and Surplus Lines
• Employer’s Liability
• Blanket Insurance