Definition: Alternative dispute resolution or ADDR refers to any method of resolving disputes without litigation. 

Types of ADR: The most common types of ADR for civil cases are mediation, settlement conferences, neutral evaluation, and arbitration. 

Types of ADR: 

• Arbitration - A process similar to an informal trial where an impartial third party hears each side of a dispute and issues a decision; the parties may agree to have the decision be binding or non-binding
• Binding and Non-Binding - A binding decision is a ruling that the parties must abide by whether or not they agree with it; a non-binding decision is a ruling that the parties may choose to ignore
• Arbitrator - An impartial person given the power to resolve a dispute by hearing each side and coming to decision
• Hearing - A proceeding in which evidence and arguments are presented, usually to a decision-maker who will issue ruling
• Mediation - A collaborative process where a mediator works with the parties to come to a mutually agreeable solution; mediation is usually non-binding.

Alternative dispute resolution (ADR) is designed to settle disputes outside of the courtroom with the help of an impartial third party. This path is generally accessible after efforts between the client and the insurer to resolve any differences between themselves fails and reaches an impasse.

• Parties can save money on legal fees, court costs, and other expenses associated with court proceedings.
  
• Allows parties to resolve their disputes in a more timely manner.
  
• ADR takes place in a less formal setting than a courtroom, which can reduce the stress and tension often associated with traditional litigation.

• There is no guarantee that ADR will lead to a resolution
  
• There might be a power imbalance between the parties
  
• Parties may have limited options to challenge the outcome.