In September 2025, a Louisiana federal ruling upheld an insurer’s push for arbitration in a commercial hurricane damage dispute. While this seemed like a win for insurers, the case ultimately demonstrated that policyholders—including nursing home owners and other commercial property operators—can still secure strong outcomes in arbitration if they prepare strategically.
As arbitration becomes more common in insurance contracts, commercial property owners must understand what it means for their rights and how to protect their claims in 2025.
The Louisiana Case: Arbitration Doesn’t Mean Defeat
The dispute stemmed from a nursing home chain’s claim for Hurricane Ida (2021) damages, which included severe roof, water, and structural losses. The insurer denied significant portions of the claim and moved to enforce an arbitration clause in the policy.
● The federal court upheld arbitration, limiting the policyholder’s ability to litigate in open court.
● However, the nursing home’s legal team presented expert engineering reports, detailed financial records, and extensive photographic evidence during arbitration.
● This evidence turned the tide, resulting in a favorable settlement that covered both property restoration and business interruption losses—critical for keeping the nursing home operational. This case highlights that while arbitration may reduce a policyholder’s options, it does not eliminate the chance for a fair resolution.
Why Arbitration Matters for Policyholders
Arbitration is increasingly built into commercial property insurance contracts, especially in hurricane-prone states like Louisiana, Florida, and Texas. Nursing home operators and other property owners should understand its implications:
● Insurer Advantage – Arbitration often limits appeals and is generally more private, allowing insurers with greater resources to control the process.
● Evidence is Key – Arbitrators rely heavily on the documentation and expert testimony presented. Strong evidence can overcome insurer narratives.
● Policy Clauses – Many 2025 commercial policies now contain mandatory arbitration provisions, making it essential to prepare before a dispute even arises.
How to Win in Arbitration: Practical Strategies Even in insurer-friendly forums, policyholders can level the playing field with the right strategy:
1. Review Your Policy Provisions
Identify whether arbitration is mandatory, what rules apply, and whether you have any ability to negotiate these terms before a claim arises.
2. Build a Comprehensive Case File
Collect engineer assessments, contractor reports, repair estimates, photos, financial loss documentation, and regulatory compliance records. The more thorough your file, the stronger your arbitration position.3. Work with Experienced Arbitration Counsel Not all attorneys are skilled in arbitration. At the Voss Law Firm, we’ve successfully navigated arbitration to secure millions in hurricane settlements for policyholders, even when insurers tried to limit recovery.
The 2025 Outlook: Be Prepared Before the Storm
With hurricanes intensifying and insurers leaning on arbitration to cut litigation risks, nursing home owners and commercial property operators must be more vigilant than ever. Arbitration clauses can’t be ignored, but they don’t strip away your right to a fair settlement.
If your claim has been denied, delayed, or pushed into arbitration, don’t assume the insurer has the final word. Contact The Voss Law Firm today for a free consultation—and let our team fight for your rights, whether in arbitration or court.
