Insurance Policy Fails to Provide Pre-Judgement Interest

This case takes place in Georgia and involves a provision of an insurance policy with fairly high limits. The insured had given her consent to settle several legal malpractice cases pending against her. The cases were tried, and a large amount of pre-judgment interest was assessed on the covered insurance limits. The policy provided for additional coverage of post-judgment interest as a supplementary payment, however it did not address pre-judgment interest. Although the state in which the plaintiff lived provides for pre-judgment interest on judgments, the insurance company contended that it will not be provided as it was never on their policy.

Question(s) For Expert Witness

1. Would an insurance company using reasonable diligence and good faith include information in the insurance policy as to whether or not the payment of pre-judgment interest, which is required by law, will be a supplementary payment?

2. Would a reasonable construction of the insurance policy by practitioners in the field of insurance be that the pre-judgment interest is covered as a supplementary payment, or is not so covered or regarded as an ambiguous provision?

Expert Witness Response E-011178

I am highly qualified to review this case. I have served as a past president of American Risk Insurance. I have taught and published on liability insurance and hold the CPCU designations. A lot of times it comes to policy language. I would be glad to examine this policy closely. A reasonable construction of the insurance policy could, indeed, be that pre-judgement interest is covered as a supplementary payment.