Bi-Economy Market, Inc. v. Harleysville Ins. Co.

Bi-Economy (plaintiff), a retail meat market, had business-interruption insurance from Harleysville (defendant) meant to cover lost income for up to 12 months after a disaster. After a fire shut down the market, Harleysville initially paid only a fraction of the claim and, over the following year, offered only seven of the promised twelve months of coverage. More than a year after the fire, arbitration ordered Harleysville to pay roughly $244,000 more in benefits — but by then Bi-Economy's business had already completely collapsed. Bi-Economy sued, seeking damages for the business's total collapse as consequential damages caused by Harleysville's delay in paying the time-sensitive benefits.