In research of updating our business disclosures, I noticed that some banks have wording on Arbitration. Does anyone understand what this covers as far as liability and why some bank's include it in their Deposit / Business Account Disclosures while others do not?

It is a business risk decision. Might be a State law issue also. It is still allowed in Commercial transactions. If it is binding arbitration, that means the customer cannot sue you, they have to go through arbitration instead of the court system. That is why it is not allowed in consumer transactions.

I am not a lawyer, but our commercial disclosures and agreements all require binding arbitration. I think we require arbitration in our consumer agreements.

From what I've seen, arbitration is recommended if you want to avoid class action law suits. It was highly recommended as the wave of overdraft lawsuits was going around. However, my debt collector isn't keen on it because it can hamper debt collection efforts and it can be costly in other ways.