Maybe, Maybe Not in Civ Pro

We learned in civil procedure that liability insurance is a way to protect against meritless lawsuits because the insurance will protect the defendant from the cost of litigation.  My thought is, couldn’t the insurance end up protecting against the litigation that its very presence is inviting?  It seemed like circular logic to me.  A defendant needs insurance to protect against the cost of litigation.  But, as we’ve learned time and time again in torts, plaintiffs tend not to sue defendants with no money, and that a defendant with insurance can become a nice cash cow to fund a settlement or judgment.  So, we’re left with having insurance to avoid litigation cost, but potentially invite litigation, or not have insurance in order to be unattractive to litigation, but be on the hook for costs if litigation does happen.

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