The Length of the Road Back from Disaster: Four Rules for Measuring the Business Interruption Period



Insurers tend to ignore these cases, and seek to place the spotlight only on the policyholder’s “due diligence.” In fact, the policy language does not relate the required “due diligence and dispatch” to the policyholder. The BI period simply is defined to end “when with due diligence and dispatch the building and equipment could be repaired or replaced.” This required “due diligence and dispatch” fairly includes both the policyholder and the insurer. If the insurer fails to do its part promptly in adjusting the claim and providing advances for repairs, the policy, the case law, and fairness dictate that the insurer’s delay must be taken into account in setting the BI period.