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Contracts Keyed to Dawson
Bi-Economy Market, Inc. v. Harleysville Ins. Co.
Citation:
10 N.Y.3d 187, N.Y.S.2d 505, 886 N.E.2d 127.Facts
Bi-Economy was a family-owned meat market that suffered a major fire resulting in loss of inventory and structural damage. Bi-Economy was insured by Harleysville under its “Deluxe Business Owners” policy. The Policy provided for replacement costs of the building and business property, as well as coverage for lost business income (“business interruption insurance”) for up to one year from the date of an occurrence. After the fire, Bi-Economy submitted a claim under its policy. Harleysville disputed the claim for actual damages and advanced only $163,161.92. A year later, Bi-Economy was awarded an additional $244,019.88 via an alternative dispute resolution. Harleysville continued to offer to pay only seven months of lost business income despite the policy providing for twelve months of coverage. Bi-Economy ultimately went out of business.
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