Suffering a significant loss can be a frustrating and worrisome process. In these circumstances, most people don’t know their rights and often don’t feel that they can trust their insurance company.

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The truth of the matter is that they have reason to be worried. It’s in the best interest of the insurance firm to keep the payout to a bare minimum. This often leads to a dispute between you and your insurer. According to the professionals at Diamond And Diamond Lawyers, it counts in your favor to hire someone to resolve this conflict on your behalf.

Going to trial, however, may not be necessary. There are several other options available to settle a dispute. The most popular of these are negotiation, mediation, and arbitration. These methods are often more effective in resolving conflict than a court case. It allows you to resolve matters quickly and avoid unnecessary expenses.

These processes are explained in brief below.


Image by Gerd Altmann from Pixabay 

Negotiation is defined as cross-communication between the parties involved aimed at settling a dispute. It’s the most basic means of resolving conflict.

In this procedure, a dispute lawyer’s role is to negotiate with the other party on your behalf. Typically, these discussions will be conducted in the boardroom of a law firm. It allows you to participate in decisions that affect you. If a mutually acceptable agreement is met, it may become an enforceable contract between the parties involved.


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Should negotiation fail, this is typically the next step. Ths voluntary process is presided over by a Mediator. The role of this impartial person is to promote communication and reconciliation between the parties. If successful, this process generally leads to an agreement that satisfies all parties involved.

The Mediator isn’t entitled to force an agreement or make any decisions. Your lawyer will, on your behalf, present your side of the case. These meetings are often held in an agreed-upon location or the Mediators office. If a solution comes up, it’s reduced to a written contract, which may become enforceable.

It’s your lawyer’s responsibility to protect your rights and ensure that you have made a fully informed decision before accepting the terms of the agreement.


Arbitration comes into play if a decision can’t be reached through communication by the parties involved. The dispute will be submitted to the Arbitrator, who’ll listen to evidence supported by exhibits, documents, and testimony. This person alone controls the process and will make an impartial decision to resolve the conflict. Your right to appeal to the outcome of this procedure is limited.

Image by Gerd Altmann from Pixabay 

The process is conducted in a formal setting like an office or meeting room, and there can be up to three Arbitrators on the panel. The decision can be reduced to a judgment in court and is therefore binding and enforceable.

Your attorney’s role in this process is to select the proper Arbitrator based on your dispute’s specifics. They’ll also represent you during this procedure.

Is A Lawyer Really Necessary?

If you get caught up in a dispute with an insurance firm, you’re dealing with people with a solid understanding of the law. It’s a fool’s errand, in a legal battle, to take the reins against someone that has more knowledge than you. 

Appointing a lawyer to represent you, levels the playing field. An attorney will protect your constitutional rights and ensure that you receive fair compensation to cover your loss.