I think they would get a cheque anyway, no insurance company would want to take on a rebuild of the plant ect.
There are too many risks involved that could blow out the reconstruction costs plus having staff flying to the outback all the time is just too much hassel.
Its better to limit their liability and move on to the next claim.
In this instance BDI could possibly negotiate up rather than down based upon the above however it all depends upon the written insurance contract that was Initially agreed to by both parties.
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