What is insurance arbitration?
Insurance arbitration is a way to resolve disputes between you (the policyholder) and your insurance company when you can’t agree on a claim settlement.
How does insurance arbitration work?
Let’s say you have auto insurance. If you get into an accident, you file a claim with your insurance company to get money to cover the costs. But you disagree about how much money you should get for your claim. This is where arbitration comes in:
- Agreement. You and your insurance company agree to have an impartial third party, known as an arbitrator, review your dispute.
- Evidence. Both of you present your evidence and arguments to the arbitrator. This could include documents, photos and explanations of what happened.
- Decision. The arbitrator carefully considers all the information and then makes a decision.
- Final resolution. The arbitrator’s decision is final, which means you can’t take the insurance company to court over it.
What are the benefits and drawbacks of choosing arbitration over traditional legal proceedings?
When thinking about using arbitration, you should consider these two important factors: time and money.
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Arbitration is usually quicker than going to court, and it’s way cheaper than paying for lawyers. But if you’re dealing with a really big claim, like millions of dollars, arbitration might not be the best option.
NEXT offers customized insurance that’s aligned to your business needs
We know your business is unique and has specific needs. That’s why we offer affordable, custom business insurance coverage. To get your tailored instant quote, simply answer a few questions online. Once you’ve purchased your insurance, you can immediately access your certificate of insurance and share it 24/7 via the NEXT app.
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Let’s find the coverage you need for your business
Business insurance is divided into different policies. We offer seven types so it's easy to design the coverage that fits your business.
General Liability
Protect yourself from accidents that cause physical injury or damaged property.
Professional Liability/E&O
Shield yourself from lawsuits that claim your work errors caused financial losses.
Workers’ Compensation
Cover medical bills and lost wages if your employees have an accident at work.
Commercial Auto
Stay on the road with coverage for dents, tows and damage to someone else’s vehicle.
Tools & Equipment
Upgrade your general liability coverage to protect any gear that’s stolen, damaged or lost.
Commercial Property
Keep your building, inventory and equipment protected from fire or water damage.
Business Owner’s Policy
Combine general liability and commercial property into one policy to protect your business.
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* To the extent permitted by law, applicants are individually underwritten, not all applicants may qualify. Individual rates and savings vary and are subject to change. Discounts and savings are available where state laws and regulations allow, and may vary by state. Certain discounts apply to specific coverages only.