Dispute Resolution

May 3, 2011

Dispute-resolution provisions, found either within the basic D&O policy form or as an attached endorsement, dictate how disputes between the insured and insurer regarding terms and conditions of the policy are to be resolved. Although such provisions may appear innocuous, they can contain onerous language that is detrimental to the insured or that otherwise favors the insurer. Such clauses can be potentially troublesome, especially where binding arbitration is made a mandatory provision of the policy. For more information, refer to Mandatory Arbitration Clauses in Insurance Contracts Stirs Controversy.