Arbitration primarily involves what type of issues?

Arbitration is typically used to resolve disputes that arise regarding the interpretation of contracts and underlying coverage issues. This process allows parties involved, often in the context of insurance, to reach a binding decision on disagreements without resorting to litigation in court.

Coverage issues can involve questions about what is and isn’t included within an insurance policy, such as whether a specific claim falls under the terms of the coverage provided. They often require an in-depth understanding of the contractual language used in policies and can lead to significant disputes between insurers and insured parties if interpretations differ.

Claim amounts, policy exclusions, and premium adjustments, while important components of an insurance policy, do not solely define the nature of arbitration. While they may be addressed in the arbitration process, the core focus tends to be on the broader context of coverage and whether the insurance company has provided adequate protection according to the terms agreed upon in the contract.