Mediation Deductible Credit

Mediation Deductible Credit on Professional Liability for Architects/Engineers

Most insurance companies will offer a deductible credit when your firm successfully has mediation in the event of a claim. Check your firm’s policy to verify that this credit is available, below are a few examples of the policy wording for a mediation deductible credit.

Example one:

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 two:

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.

Depending on your firm’s insurance company policy, the mediation deductible credit will vary. Keep in mind that some insurance companies may not offer the mediation deductible credit. Also, as the examples read above, there will be limits to the deductible credit.

Be sure to ask the claims representative of your firm’s insurance company, if mediation occurred, if your firm would be eligible for the mediation deductible credit. This credit will not apply if there is a settlement outside of mediation. The deductible credit will also not apply to arbitration.

If you have any questions with regards to mediation deductible credit please call or email your Professional Underwriters agent for assistance.mediation deductible credit



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