Defendants, plaintiffs, mediators and insurers are increasingly sophisticated and attuned to the need of addressing insurance coverage disputes in mediation. The financial downturn has also placed greater pressure on companies to maximize insurance contributions to resolve lawsuits. The insurance implications of insolvency and bankruptcy add a new layer of complexity to the task. Careful and early attention to insurance coverage disputes is necessary to a successful mediation outcome.
The Role of Insurance in Mediation
Insurance money often drives settlements. Even when other assets exist, both plaintiff and defendant may assume that the case will be settled, if at all, within the policy’s limits.
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