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Step 3 of 4
Arbitration
Presenting your case to an arbitrator who makes a decision on the dispute.
Typical Timeline
2-6 months
Typical Cost
$1,000-$5,000
Binding?
Depends on Policy
What is Insurance Arbitration?
Arbitration is a more formal dispute resolution process where an independent arbitrator (or panel) reviews evidence from both sides and makes a decision. It's like a simplified court proceeding but typically faster and less expensive.
Binding Arbitration
- • Decision is final and enforceable
- • Very limited appeal options
- • Both parties must accept outcome
- • Common in many insurance policies
Non-Binding Arbitration
- • Decision is advisory only
- • Either party can reject and go to court
- • Often used as a "reality check"
- • Less common but more flexible
Pros and Cons
Advantages
- • Faster than litigation
- • Less expensive than court
- • More formal than mediation
- • Arbitrator has industry expertise
- • Private and confidential
- • Binding decision provides closure
Disadvantages
- • Limited discovery process
- • Very limited appeal rights
- • Arbitrators may favor repeat customers (insurers)
- • You give up right to jury trial
- • Can still be expensive
- • Binding decisions are final
Check Your Policy First
Your insurance policy contains an arbitration clause that specifies:
- • Whether arbitration is mandatory or optional
- • Whether it's binding or non-binding
- • How arbitrators are selected
- • Who pays for the arbitration
- • Time limits for requesting arbitration
Strongly Consider an Attorney
Arbitration is a quasi-legal proceeding. Insurance companies will have experienced representatives. Going in without legal representation puts you at a significant disadvantage. Many insurance attorneys work on contingency for arbitration cases.
Building Your Arbitration Case?
Professional documentation and analysis can strengthen your position in arbitration. Get expert support before your hearing.