What is insurance?
Protecting your business from natural disasters, employee injury claims, and customer slips and falls is essential. Every business owner in Florida should be familiar with the various types of commercial insurance. Having the right insurance policy makes a difference between financial loss and a thriving business that successfully overcomes incidents.
Insurance, represented by a policy, is a contract that allows an individual or a company to receive financial reimbursement from an insurance company if specific predefined losses occur.
In Florida, businesses use different types of coverage to protect their daily operations and business property and ensure their workers’ workplace safety.
General liability coverage protects businesses against customers’ claims resulting from personal injury on business premises.
Commercial auto coverage ensures vehicles and trailers are safe from damage. It also protects against personal injury and property damage claims related to their use.
Florida law requires all employers with three or more employees to buy workers’ compensation coverage to protect their workers from personal injuries and occupational illnesses.
Professional liability coverage protects businesses from third-party claims resulting from professional negligence.
Insurance Disputes
Insurance disputes arise when a policyholder and an insurance carrier disagree about the reimbursement. The insurance company can offer a lower amount of compensation or deny the claim outright. Sometimes, the insurance carrier delays the payment without a valid legal explanation, arguing that the claim is not part of the policy or the coverage has ended due to behavior opposite to the terms of the policy.
The traditional way of resolving insurance disputes is court litigation. However, filing a lawsuit marks the beginning of a cumbersome, time-consuming, and financially exhausting process. The litigation consists of several strictly divided stages, each involving an expensive attorney and court filing fees. Insurance disputes often include a vast body of evidence, pre-trial motions, complex discovery procedures, and exhausting witness testimonies. Getting a court date can take months, and dispute resolution sometimes takes years. Besides, litigation is public, meaning sensitive business information becomes publicly available. That can harm the reputation and cause disruptions to everyday business operations. In addition, the state-appointed judges do not have the time, knowledge, or resources to deal with complex insurance issues, such as the allocation of loss among multiple potentially liable insurers.
As an alternative, mediation offers multiple advantages.
Mediating Insurance Disputes
An out-of-court method, mediation involves a neutral third person facilitating the negotiations between the insured and the insurance company. The mediator is a retired judge or an attorney with experience in insurance matters, which differentiates them from state-appointed judges who usually lack such subject matter expertise.
Mediation is confidential. The parties sign a confidentiality agreement (often a clause of a mediation agreement) obliging themselves to keep everything shared during sessions out of public sight. The confidential nature of mediation protects the parties from undue publicity, which is particularly important in a business environment. The mediator and the parties must remain confidential during mediation and in potential future litigation.
The voluntary aspect of mediation is another feature of this out-of-court process. The parties choose the mediator by signing the mediation agreement, which is usually an integral part of an insurance policy. However, in practice, the insurer appoints the mediator by assigning them to an insurance policy, which policyholders tend to accept. To some extent, this compromises one of the central characteristics of mediation.
The mediation process consists of four stages: introduction, opening statements, and private and joint sessions. After introducing themselves, mediators explain the procedure to the parties and allow them to give their opening remarks regarding the dispute. The parties then go to separate rooms for private sessions (caucuses) with the mediator. The mediator goes back and forth between the session rooms, talking with the parties and evaluating their arguments. In joint sessions, parties discuss the disputed matter openly, bringing offers and counter offers. The mediator does not have decision-making authority. Their task is to facilitate negotiations and help parties resolve the dispute through settlement.
Successful negotiations result in a settlement. When both parties sign the agreement, it is enforceable as a binding contract.
Reach Out
Hal Wotitzky, a Florida Supreme Court certified mediator since 1994, has decades-long experience mediating hundreds of insurance disputes.
Mr. Wotitzky’s commitment to neutrality and adherence to the highest ethical standards in facilitating negotiations distinguishes him from the competition. His dedication and persistence are invaluable assets that help him successfully mediate the most contentious insurance disputes.
Please reach out today to schedule your appointment.