What does Mediation Incentive Deductible mean? Read on to discover the definition & meaning of the term Mediation Incentive Deductible - to help you better understand the language used in insurance policies.
Mediation Incentive Deductible
A reduced deductible amount offered within some lawyers professional liability policies. It is available to firms requiring its clients to sign agreements stating that the client must use alternative dispute resolution (ADR), rather than the judicial process, if the client pursues a claim against the firm. The rationale for this provision is that both indemnity and defense costs will generally be lower when claims are settled by mediation compared to the traditional judicial system.
We hope the you have a better understanding of the meaning of Mediation Incentive Deductible.