It will be interesting to see how this lawsuit plays out.
It's all based on the contract. I'm guessing none of us on this thread have read the contract in question. I doubt the attorneys at Salem are so stupid as to file a lawsuit with no legal basis to it. But, then again, attorneys carry out what their clients tell them to do. Although they will inform their clients if the suit has no chance whatsoever of succeeding in court.
And insurance companies are proverbially famous for shirking their promised coverages when it comes time to pay. Ask any car accident victim. They usually end up suing an insurance company, sometimes their own.