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For example, most insurance coverage insurance policies in the English language at present have been rigorously drafted in plain English ; the industry discovered the laborious way that many courts will not implement insurance policies towards insureds when the judges themselves can not perceive what the policies are saying. Usually, courts construe ambiguities in insurance coverage insurance policies in opposition to the insurance coverage firm and in favor of protection below the coverage.

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In managing the claims handling function, insurers seek to steadiness the weather of customer satisfaction, administrative dealing with expenses, and claims overpayment leakages. As a part of this balancing act, fraudulent insurance practices are a serious enterprise danger that must be managed and overcome. Disputes between insurers and insureds over the validity of claims or claims dealing with practices occasionally escalate into litigation (see insurance dangerous religion ).