alternative dispute resolution provision
A clause found within professional liability policies stating that disputes
regarding the application of coverage under the policy will be resolved by alternative
dispute resolution (ADR) approaches (generally arbitration), rather than through the
traditional court system. Some policies contain mandatory arbitration provisions,
stating that disputes must be settled in this manner. In contrast, other ADR provisions afford the insured the option—but not the obligation—to
submit such disputes to arbitration. The latter version of this provision is
more advantageous for the insured.
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PLI IV.I;
D&O Coverage Guide