Most people consider insurance to be a kind of necessary evil. Each year, you hand over a lump of money so you can rest easy, knowing that if something goes wrong, you will not be hit with large out-of-pocket expenses. Or at least that is how its meant to work.

After years of paying your policy, you need to claim for something and send off the form to your insurance company. They reply to say that your policy does not cover your precise situation, thanks to some vague language written in tiny font on page 17 of their insurance document.

If this happens to you, all is not lost. Remember, insurance companies would rather not pay you out as it costs them money to do so. Insurance companies often use excuses to avoid having to pay. Tactics such as interpreting ambiguous language to their advantage or denying your claim without giving what you consider a valid reason are common.

Many people give up at this point and walk away with nothing. Others decide to take the insurance company to court. Going to court is costly, however, and requires you to invest time and money. Besides, you might not win. Insurance companies do not like going to court either, it costs them time and money, and they may lose. If they do lose, they have no say in the amount awarded.

By contrast, taking your insurance dispute to mediation is better for you and the insurance company. It cost less money and time, and you negotiate a settlement that you are both happy with, rather than relying on a court to decide.