What role does mediation play in settling an insurance claim?

Mediation is one of the most effective tools for resolving an insurance claim short of trial. Many personal injury and insurance disputes are ordered to mediation by the court, and many settle at that stage. In mediation, a neutral mediator facilitates communication between the injured party and the insurer’s representative, helps the parties evaluate the strengths, weaknesses, and risks of their respective positions, and assists them in reaching their own mutually acceptable resolution. A mediator with substantial experience in insurance claims can understand the issues driving the parties’ positions and help facilitate productive discussions while remaining neutral throughout the process. Because mediation is confidential and non-binding until an agreement is reached and signed, it allows both sides to negotiate candidly toward a resolution that can avoid the cost and uncertainty of trial.