Insurance Fire Dispute Case Study 

Mediation was entered into and both parties were steered very cautiously by counsel. The parties had a long standing relationship, many of their subsidiaries were also insured through this insurer, the insurer wanted to retain their custom but not at any cost.

Mediation allowed for a deal to be made which served both of their interests, party 1 did not get a complete payout but 70% of what they were asking, the insurer also agreed to reduce their rates of insurance and freeze the same for a 3 year period in respect of some of party 1’s activities, which provided a considerable cost saving to them. Equally all new polices would be clearer on what was covered and what was excluded.