Mediation can be an effective way to resolve an insurance claim when you do not want to litigate the case. If you are trying to protect the insurance company or if you are representing the plaintiff in a personal injury lawsuit, it is important that you have a firm understanding of the fundamental legal issues that may be part of the mediation process. Our mediators have more than 45 years in this realm helping parties reach mutually satisfactory agreements that resolve insurance claims. Below, we discuss some of the most common legal issues you may confront in mediation.

Continuous Loss Claims
In continuous loss claims, it is vital that all relevant insurance companies have been notified of the claim and that they are brought into it when necessary. This can ensure that your client receives compensation from more than one party or that the liability is spread between other insurance companies. You will want to investigate which insurance policies are involved in the case and obtain copies of these policies before mediation so that you can get a better idea about which policies may apply to the case.

Intentional Acts

If part of the claim is barred because of the insured’s intentional act but there were innocent co-insured parties, it is important that you are able to flesh out the potential damages that are still at play in the claim. You will need to analyze each insured’s coverage to ensure that you are complying with the terms of the insurance agreement while also minimizing the potential payout you make to the insured.

Bad Faith Claims
It is not uncommon for a plaintiff’s attorney to allege bad faith if he or she files a lawsuit. This is because, if successful, the amount of damages increases, as well as his or her ability to obtain attorney’s fees for a successful claim. Additionally, a bad faith claim can help provide a plaintiff with leverage when the claim is weaker due to liability or comparative negligence issues. Be sure that you have a clear understanding of bad faith insurance law and that you can successfully argue for or against it, based on your client’s objectives.

Umbrella Policies

If the case involves potentially relevant umbrella policies, be sure that you get a copy of these policies and carefully read over the policy language. It is likely that you will need to fully exhaust all of the coverage available under other applicable policies. This can be an important note if you are advocating for the plaintiff and you want to maximize recovery. If you settle with one company for less than the value of the claim, you may run the risk of excluding coverage from the umbrella policy.

For More Information
If you would like more information on the mediation process or how to prepare for mediation of an insurance claim, call Smith & Tomkins at 615-256-1280 or visit us at www.smithtomkins.com.

Warren Smith
www.smithtomkins.com