Insurance Consultant Lawyer in Panama City, FL
Policyholders may find it surprising to discover that their insurance policies contain an arbitration clause, which is why they turn to an insurance consultant lawyer in Panama City, FL at Childress Loucks & Plunkett. When deciding whether to proceed with the arbitration of an insurance claim, either after a denial of a claim or when obtaining a policy, an understanding of the advantages and disadvantages of arbitration are helpful.
Advantages of Arbitration
Arbitration may be best described as a process by which opposing parties submit a dispute to a third-party decision-maker. That decision-maker is selected by or for the parties. They function to render a binding decision that resolves a dispute, affording each party a chance to present its case.
An insurance consultant lawyer in Panama City, Florida may talk with you about the several advantages of arbitration over litigation exist. They include:
Finality; This refers to the absence of a judicial review of awards from arbitration. In general, the decisions of arbitrators are considered final and binding. The benefits of this limited appellate review are fewer litigation costs and reduction of the delays associated with litigation.
Enforceability; In the context of international arbitration, enforceability is particularly valuable. It is usually easier to enforce foreign arbitral awards than judgments in foreign courts.
Procedural Flexibility and Party Autonomy; Arbitration allows party autonomy in that parties in arbitration have the freedom to agree on the procedures, rules, and laws applicable to their disputes.
Neutrality; Party autonomy functions to open a space for the impartiality of a venue. Thus, in arbitration, the parties in dispute can potentially avoid concerns about the biases of going to court in the other party’s home jurisdiction.
Disadvantages of Arbitration
As a Florida insurance consultant lawyer in Panama City is aware, there are also potential disadvantages of arbitration too. Both finality and enforceability can limit one party’s recourse if an unfair decision is rendered. Party autonomy, procedural flexibility, and neutrality may lead to a lack of legal protection. This lack of legal protection generally impacts and harms the weaker party. Additionally, confidential proceedings may limit a party’s ability to obtain a specific precedent from a favorable ruling. As for cost and speed, these advantages might be limited in more complicated proceedings.
Arbitration vs. Litigation
When it comes to arbitration vs. litigation, a Panama City, FL insurance consultant lawyer knows that insurance carriers typically favor insurance coverage arbitration because arbitration is better at limiting insurer loss than litigation. Policyholders should heed significant lessons in understanding this, including:
– Policyholders should do their due diligence regarding insurance policies and not agree to arbitration clauses.
– Unless adequate steps are taken to ensure a neutral arbitrator, policyholders should refuse or resist insurance company efforts to arbitrate.
– Policyholders should be aware that arbitrators with extensive insurance coverage experience are likely not neutral. If these arbitrators have been selected for insurance matter arbitration repeatedly, it could be that they have provided numerous decisions favoring insurers’ interests.
– Policyholders should be aware that arbitrators with minimal insurance experience usually provide policyholders with more equitable arbitration.
– If you get the wrong arbitrator, you may lose your case upon the selection of that arbitrator.
As a result of these disadvantages, some policyholders may find it advisable to avoid arbitration entirely. They may be better off purchasing insurance that does not contain an arbitration provision. Hiring a member of our legal team can help you to determine which clauses to avoid, and can help to effectively manage your insurance coverage as a financial asset. For more information, schedule a consultation with a Florida insurance consultant lawyer from Childress Loucks & Plunkett today.