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

abcnews.go.com:

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

RALEIGH, N.C. — North Carolina's Supreme Court issued mixed rulings Friday for businesses seeking financial help from the COVID-19 pandemic, declaring one insurer's policy must cover losses some restaurants and bars incurred but that another insurer's policy for a nationwide clothing store chain doesn't due to an exception.

The unanimous decisions by the seven-member court in the pair of cases addressed the requirements of “all-risk” commercial property insurance policies issued by Cincinnati and Zurich American insurance companies to the businesses.

The companies who paid premiums saw reduced business and income, furloughed or laid off employees or even closed from the coronavirus and resulting 2020 state and local government orders limiting commerce and public movement. North Carolina restaurants, for example, were forced for some time to limit sales to takeout or drive-in orders.

In one case, the 16 eating and drinking establishments who sued The Cincinnati Insurance Co., The Cincinnati Casualty Co. and others held largely similar policies that protected their building and personal property as well as any business income from “direct physical loss” to property not excluded by their policies.

Worried that coverage would be denied for claimed losses, the restaurants and bars sued and sought a court to rule that “direct physical loss” also applied to government-mandated orders, a court opinion said. A trial judge sided with them, but a panel of the intermediate-level Court of Appeals disagreed, saying