The practicalities and economics of denying insurance cov-erage weigh very heavily in favor of insurance companies. And all too often the grounds given in court by insurance company lawyers for denying insurance coverage run to the ridiculous.
Delay works in favor of insurance companies.
A policyholder is out of pocket money during an insurance coverage dispute and frequently faces cash flow problems, sometimes small, but more often severe. Moreover, many courts do not award prejudgment interest. Pre-settlement interest is virtually unheard of in a settlement. When a policyholder does challenge an insurance company in court or in a regulatory proceeding, the cards are stacked against the policyholder. A policyholder can expect a major casualty loss once every 30 years.