Contingency - When estimating the cost for a project, product or other item or investment, there is always uncertainty as to the precise content of all items in the estimate, how work will be performed, what work conditions will be like when the project is executed and so on.
An arbitrator is one who delivers a fair judgment to resolve a dispute. The arbitrator's decision may or may not be favorable to one or more parties involved; however, the arbitrator is a neutral third party chosen by the disputing parties in lieu of litigating in court.
Arbitration is a way of resolving a dispute that does not involve going to court. Instead, the parties to the dispute (in this case, it would be the insurance company and the policyholder) tell their side of the story to a neutral third party called the arbitrator..