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

On December 13, 2024, the North Carolina Supreme Court delivered important rulings on COVID-19 insurance claims, resulting in mixed outcomes for affected businesses. The court ruled that Cincinnati Insurance Company must compensate a group of restaurants and bars for losses due to government-imposed pandemic restrictions, highlighting that the policies did not clearly exclude virus-related losses. Associate Justice Anita Earls emphasized the insurers' responsibility to clarify ambiguous terms. Conversely, the court ruled against Cato Corp. , citing a viral contamination exclusion that applied to its claims.

These decisions clarify the court's position on pandemic-related insurance claims and set a precedent for future disputes, which is particularly significant as many businesses continue to recover from the pandemic's impact.