Communication difficulties between carriers can lead to inefficiencies in arbitration filings. We have included a scenario below of what can occur when policy limits are not shared upfront:

• Party A issues an E-Subro Hub demand requesting approximately $30,000 in damages.
• After a third-party damages review, Party B responds to the demand and offers $23,000.
• Party A rejects the offer and files Auto arbitration.
• Party B responds and presents its damage dispute (liability is admitted).
• An arbitrator rules on the damage dispute awarding the $23,000 proposed by Party B.
• Thirty (30) days after the decision publication, Party A sends an unpaid award notification to Party B.
• Party B submits a post-decision inquiry asserting and supporting policy limits of $5,000. The decision is amended to reflect the $5,000 limit, which Party A agrees to accept.

Too often, policy limits are not asserted and supported until after an arbitration filing has been heard. While Rule 3-9 allows for such post-decision issues, it should be reserved for the occasional oversight. By sharing policy limits upfront, parties may reach an agreement sooner and eliminate potential costs from third-party damage reviews.