A North Carolina mining company has filed a $130 mn lawsuit against an affiliate of Zurich Insurance Group, alleging the carrier failed to pay for property damage and business interruption tied to Hurricane Helene.
The suit names Zurich American Insurance Co. as defendant and was brought by Sibelco North America Inc.
Sibelco says the policy covered multiple commercial properties across North Carolina, including sites hit by Helene, according to BestWire.
Helene made landfall near Spruce Pine on Sept. 27, 2024. Power failed across Sibelco’s operations. Pumphouses flooded with water and mud.
High winds, the company claims, caused additional damage across several locations. The disruption didn’t end quickly, and neither did the losses.
Sibelco alleges it suffered more than $130mn in combined property damage and business interruption in the months after the storm. The company submitted claims under its Zurich policy.
Payment never came, at least not in the way Sibelco expected.
Zurich declined to comment, telling BestWire it does not discuss matters in litigation. That’s standard practice, and it leaves the court filings doing most of the talking.
In its complaint, Sibelco seeks declaratory relief under North Carolina law. The claims include breach of contract, breach of good faith and fair dealing, and unfair and deceptive claim settlement and trade practices. The remedies sought go beyond basic damages.
The company asks for actual and compensatory damages, treble damages, attorneys’ fees, costs, and both pre- and post-judgment interest.
The case was removed to the U.S. District Court for the Western District of North Carolina from the Superior Court of Mitchell County. Federal court now sets the tempo.
The dispute lands against a costly backdrop for the insurance market. Hurricanes Helene and Milton ranked as the most expensive catastrophe events for insurers in 2024.
Combined losses were expected to reach $37.5bn, including public insurance payouts from the National Flood Insurance Program, according to Aon.
According to Beinsure, litigation over post-catastrophe claims remains a pressure point insurers haven’t managed to shake.
