legal
Mediation
Definition: A voluntary dispute resolution process where a neutral mediator helps parties reach their own agreement.
Mediation is a collaborative process where a neutral third party (mediator) helps disputing parties communicate and negotiate to reach a mutually acceptable resolution.
How Mediation Differs from Arbitration:
- Arbitration: Arbitrator decides the outcome
- Mediation: Parties decide the outcome; mediator facilitates
The Mediation Process:
Benefits of Mediation:
- Parties control the outcome
- Preserves relationships
- Confidential process
- Less adversarial than court
- Often less expensive
- Can be creative in solutions
When Mediation Works:
- Both parties want to resolve the dispute
- Communication has broken down
- Relationship is important (neighbors, family)
- Court would be costly/time-consuming
In Insurance Contexts:
- Claim amount disputes
- Coverage disagreements
- Contractor disputes
- Neighbor conflicts
If Mediation Fails:
Related Terms
Settlement
The final payment amount agreed upon between you and your insurance company to resolve a claim.
Claim
A formal request to your insurance company for payment based on your policy coverage.
Arbitration
A private dispute resolution process where a neutral third party makes a binding decision.

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