mediation incentive deductible
A reduced deductible amount offered within some lawyers professional liability
policies. It is available to firms requiring its clients to sign agreements
stating that the client must use alternative dispute resolution (ADR), rather than
the judicial process, if the client pursues a claim against the firm. The rationale
for this provision is that both indemnity and defense costs will generally be
lower when claims are settled by mediation compared to the traditional judicial
system.
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PLI XIII.E