Insurance Policy Limit Includes Prejudgment Interest
Say a defendant loses the case, but has enough insurance to pay off the damages. When prejudgment interest is added in, though, the judgment is more than the defendant's insurance policy limits. Who owes the excess amount, the defendant or the insurance company? The Court of Appeals in Thurman v. Harkins said that a policy limit for "all damages" includes the prejudgment interest aspect.
I see two things that could change this if you end up in a similar case. First, if your insurance policy reads differently, something vague enough like "all damages and consequences." Second, if your insurance company can let you out of the case within policy limits, but defends its own money so hard that you owe prejudgment interest because of it, you might want to look at bad faith.