Mediation Clause

A policy provision requiring that disputes between the insurer and the insured, or between the insured and the claimant, be submitted to mediation before litigation or arbitration may be pursued. Mediation clauses are increasingly common in legal malpractice policies and can help resolve coverage disputes and claims more efficiently and cost-effectively. The clause typically specifies who bears the cost of mediation, the selection process for the mediator, and the time frame for completing the process.