A recent decision from the North Carolina Supreme Court has caught attention for diverging from the prevailing judicial trend regarding insurance claims tied to COVID-19 business interruptions. In more than 800 cases across the U.S., courts have traditionally interpreted “direct physical loss” to mean that some tangible damage to property must have occurred for a claim to be valid.
However, North Carolina’s ruling in favor of local bars and restaurants seeking coverage for pandemic-related losses suggests a shift in judicial reasoning.
Justice Anita Earls, the opinion’s author, emphasized the responsibility of insurance companies to articulate clearly what their policies cover and exclude.
You can read more about this decision on Law.com.