Arbitration. Some insurance policies contain a provision allowing or requiring arbitration of certain disputes between the insurance company and the insured, and this may include disputes regarding certain types of claims. This provision is often called an “arbitration clause.” "Arbitration" is a procedure for resolving disputes by use of neutral, private individuals ("arbitrators") as an alternative to a lawsuit, and it often is a cheaper and faster method of resolving contract disputes as compared with a court proceeding. This procedure usually is not available unless specifically stated in the policy or unless the insurance company and policyholder mutually agree to submit their dispute to arbitration. When you agree to arbitrate, the arbitration is usually binding, which means you can’t appeal if you lose. See also our section on arbitration.