ADR (Alternative Dispute Resolution) refers to a method of resolving disputes between policyholders and insurance companies without having to go to court. Insurance policies often contain an ADR provision. The ADR provision spells out the details of how ADR will be conducted under the policy in question.
Although many individuals believe ADR is an inexpensive and cost-efficient method for resolving insurance claims, sometimes it doesn’t work that way. It depends on whether the type of ADR system called for by the policy provides for the use of formal rules of evidence, opening and closing briefs, the use of expert witnesses and testimony, and so on. Some types of ADR require a long, complicated and expensive process. Others do not.
Mediation is a good method for dispute for denied claims, as well as a tool to help both sides facilitate a prompt, fair resolution early in the claims process.