Originally Posted by Hansom-Man
Nearly all insurance companies will fight you on paying out on a claim. Especially if there is room for interpretation. This is how they maximize profits.
That feels like an exceptionally broad brush there. True - there are unscrupulous companies in every industry, Insurance included, but most large, long established insurance companies seek to honor the contract paying no more and no less than what is owed according to the facts of the case. Maximizing profits by fighting legitimate claims is "bad faith" (how does the company stay in business, retain customers or add new ones with that reputation - to say nothing of funding endless lawsuits and regulatory fines/penalties). Paying claims to make people happy is "bad business" (how does the company have funds to pay legitimate claims if reserves are depleted on extra-contractual claims).
I think Insurance companies make profits by truly knowing the businesses they underwrite, investing premiums smartly (i.e., not in unexplainable, highly leveraged, ponzi scheme real estate instruments), minimizing the expense of their operations and honoring their contracts.
Like any purchase, choose your insurance carrier wisely. Not universally true, but as in many cases, cheapest isn't always best.
I'll step off the soapbox now - thanks for listening :-)