What businesses do not know about their insurance policies can hurt them. Increasingly, insurers are requiring arbitration, restricting venues for hearing cases, or specifying which laws can be applied, all designed to give insurers an advantage when resolving disputes. However, policyholders may be able to negotiate and remove these restrictions.
Insurers Try to Tilt Dispute Resolutions Their Way
Many businesses do not realize that their right to go to court to enforce their liability or other casualty insurance policies may be limited by arbitration requirements, choice of law, or choice of venue clauses. These provisions may require mandatory arbitration to settle disputes, restrict the venue where disputes may be brought to ones considered insurer-friendly, or designate the law to be applied to one that is inevitably favorable to the insurer and may have no reasonable relationship to the insured.
To protect their rights, policyholders need to know about these provisions and negotiate them when policies are purchased. Not doing so may reduce or eliminate coverage and provide the insurer with significant tactical advantages.
Who Wins in Arbitration?
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