The typical method of resolving a dispute in the insurance community would be litigation. However, for folks looking for an alternative to litigation, arbitration has become quite common. Why is this and what are the potential benefits of pursuing arbitration?

Arbitration saves time and money

Typically, arbitration is a much faster way to resolve a problem compared to traditional litigation. Instead of needing to schedule court dates months in advance, an arbitration date can often be confirmed much faster.

Because it takes less time as well as the bonus of not having to pay a witness to come to trial, arbitration expenses tend to be much lower than that of a trial in court.

Further, parties are often much more agreeable to capping arbitration at a certain amount. Therefore, the parties can negotiate prior to the arbitration to obtain high and low parameters that satisfy each party. This provides more certainty that the result you will obtain from an arbitration will at least be a predictable outcome.