That's what the insurance companies want to make you think (and their scheme obviously works).

Here are some typical travel insurance plans:
http://www.insuremytrip.com/myquotec...-0-696022.html
Note that maximum payout on the Baggage Delay component ranges from $100 to $600 USD, and typically only applies to delays of 24+ hours only.

In contrast, the delayed baggage liability limit of every EU-based carrier is ~$1500 USD (1000 XDR), and it does not come with any specific 'waiting period'.