Mediation Deductible Credit in a Professional Liability Policy for Architects and Engineers

Many carriers will give a credit to your deductible if your firm agrees to mediation during the claims process.  Below are examples of the mediation credit in policies:

Example #1

If the Company and the Insured agree to resolve a claim through voluntary mediation and the claim is resolved through voluntary mediation, the Insured’s deductible obligation for such claim will be reduced by 50% subject to a maximum reduction of $25,000.

Example #2

If the Company and the Named Insured agree to resolve a Claim through voluntary Mediation and the Claim is resolved, the Named Insured’s Deductible obligation for such Claim will be reduced by fifty percent (50%), subject to a maximum reduction of $25,000 per Policy Period for all such Claims resolved or concluded in accordance with this Section V. D.

A Claim that is resolved outside of three (3) years following the date the Claim is reported in writing to the Company will not be eligible for any reduction in the insured’s Deductible obligation. This section is subject to a maximum deduction of $25,000 per Policy Period for all such Claims resolved or concluded in accordance with this Section V. D.

Example #3

If the Company and the first Named Insured settle a Claim through voluntary mediation, the first Named Insured’s deductible obligation for such Claim will be reduced by 50% subject to a maximum reduction of $25,000. Deductible payments made prior to the application of the above credit will be reimbursed within 30 days of the resolution of the Claim. This reduction does not apply to any Claim resolved through voluntary or involuntary arbitration.

Example #4

If negotiation or mediation of a claim results in a resolution of such claim within one hundred and eighty (180) days of the time it was reported to the Insurer in accordance with the Section of the Policy entitled CONDITIONS, the condition entitled The Insured’s Duties if There is a Claim, and such resolution includes an indemnity payment by the Insurer, the Deductible applicable to such claim will be reduced by 50%, up to $10,000.

The wording, amounts, maximums and overall guidelines will vary with each insurance company.  As always, read your policy so you understand the mediation deductible credit.  Please call or email your PUI Agent with questions.BROKER