This is the correct answer. Exposure to future potential liabilities is a problem already solved by insurance. Think about it this way, it's like malpractice

This is the correct answer. Exposure to future potential liabilities is a problem already solved by insurance. Think about it this way, it's like malpractice insurance for doctors. So there should be malpractice insurance for states/courts - if a conviction is later overturned and the state is liable for the return of property, it gets paid out by insurance.