Episode Show Notes / Description

• We discuss a real-life case showing how mediation can help both sides avoid costly litigation and achieve fair outcomes.
• The case involved a commercial auto insurance policy covering a fleet of company vehicles used for business.
• The company did not pay its premium at renewal, resulting in policy cancellation.
• A month after cancellation, one vehicle was involved in a serious collision, causing over $200,000 in damages and injuries.
• The company tried to file a claim but was denied coverage since the policy had been canceled.
• The business sued both the insurance company and the insurance broker, arguing they did not receive a reminder call to pay, as they had in prior years.
• Historically, agents called customers as a courtesy during slow periods, but it was not a standard procedure.
• The case was set for litigation, but the broker’s Errors and Omissions (E&O) insurance carrier suggested mediation.
• Mediation highlighted the risks of going to court, including high legal fees, unpredictable jury outcomes, and lengthy timelines.
• The injured party mainly wanted to recover actual losses (car damage, medical bills, lost wages) and not profit from the situation.
• After careful assessment, damages were around $67,000 plus legal costs; the insurance broker and insurer shared this payment.
• The company with the canceled policy absorbed its own vehicle loss but avoided further liabilities.
• Mediation helped all parties avoid larger financial risks and long, stressful litigation processes.
• Everyone involved accepted some responsibility, resulting in a fair and balanced resolution.
• The case shows how mediation can remove personal emotions, focus on practical outcomes, and allow parties to share responsibility fairly.
• Key lesson: Mediation often reveals solutions already acceptable to everyone, which may not be visible until someone guides the conversation.
• The story emphasizes managing risk, reducing loss, and finding common ground without dragging disputes into court.
• For more information on mediation services, check out Telemediator’s website.