The Bi-Economy holding illustrates an important practical lesson. At least in the context of business interruption insurance, where a carrier breaches its obligation of good faith and fair dealing by failing to promptly pay a covered claim, a court may find that it is â€œreasonably foreseeableâ€ that the insurerâ€™s â€œinjurious conductâ€ will â€œcause additional damages that the policy was purchased to protect against in the first place.â€ In those limited circumstances, New York courts may hold the insurer liable, in excess of limits, for the insuredâ€™s â€œconsequential damages including the demise of its business.â€ Whether and to what extent this ruling may apply outside the context of business interruption insurance will have to await future decisions.
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