Mediation — Insurance Claims Definition
General
A voluntary dispute resolution process where a neutral mediator helps parties settle without binding authority.
Mediation brings insured, insurer, and counsel together with a mediator who facilitates negotiation. The mediator does not impose a result. It is common before litigation or trial in property and liability claims.
Success depends on good-faith participation and realistic evaluation of outcomes.
Examples
A homeowner and carrier mediate a disputed fire loss; they settle at a midpoint after sharing expert reports in a confidential session.
Common Mistakes
Expecting the mediator to rule like a judge leads to disappointment. Walking in without authority to settle wastes the session.
