Hurricane Katrina was the deadliest and most destructive Atlantic hurricane of the 2005 Atlantic hurricane season. It devastated much of the Mississippi and Louisiana coastlines while destroying many parts of the heavily populated city of New Orleans. Due to it being the costliest natural disaster in the history of the United States, it was an insurance nightmare. Companies were overloaded with claims of business owners and home owners wanting immediate relief after losing their livelihood and homes to the hurricane’s deadly winds and floods.
When this type of overwhelming volume hits insurance companies, they do not have enough manpower to handle all of the claims. The resulting situation is one in which high stress among policy holders and employees of the company makes logical decision-making even more difficult, particularly when claims are denied and when time is of the utmost essence.
When someone loses their home, the need to find a new home is a driving force in their actions. However, when a company is backlogged with claims, the delays are understandable. The question remains of solving the situation in the best possible way while avoiding costly delays and problems for either party. When an insurance company fails to provide what it promises, policy holders are then left with a decision of whether or not to hire professional legal assistance to help them get what they believe their policy should rightfully provide.
This is where mediators come in. The process of mediation, as opposed to litigation, is one of the most cost-effective solutions to resolving any dispute over insurance claims and denied (or stalled) benefits. Mediation involves neutral, third-party and trained mediators who help both insurance companies and their policy holders avoid costly, drawn-out court battles. This type of assistance can be especially crucial in times of high stress, and can be a proven way to lower the tension so that each side can reach a satisfactory compromise.
