North Carolina justices rule for restaurants in COVID-19 claims but against a clothing chain

Associated Press

RALEIGH, N.C. (AP) — North Carolina’s highest court has ruled over some insurance claims filed by businesses that were harmed financially by the COVID-19 pandemic and the resulting 2020 government orders limiting commerce and public movement. The state Supreme Court on Friday ruled unanimously in favor of some restaurants and bars in their claims, but against clothing store chain Cato Corp. At issue are “all-risk” commercial property insurance policies issued by Cincinnati and Zurich American insurance companies. The restaurants’ lawsuit focused on the definition of “direct physical loss” and whether it applied to them. In the Cato case, the justices decided the company’s policy contained a viral contamination exclusion.