Sibelco North America has filed a lawsuit against Zurich American Insurance Co., claiming the insurer failed to cover losses tied to Hurricane Helene and seeking more than $130 million in damages, according to insurancebusinessmagazine.com.
Sibelco alleges that on September 27, 2024, Hurricane Helene caused widespread damage across its operations, including power outages, pumphouses submerged in water and mud, and structural damage from high winds.
The company says it suffered more than $130 million in property damage and business interruption losses in the months following the hurricane and submitted a claim to Zurich that was not paid.
In its complaint, Sibelco is seeking a declaratory judgment under North Carolina law and alleges breach of contract, breach of the duty of good faith and fair dealing, and unfair and deceptive claims settlement and trade practices. The company is requesting actual and compensatory damages, treble damages, attorney fees, court costs, and pre- and post-judgment interest, along with other relief.
The case was removed from the Superior Court of Mitchell County to the U.S. District Court for the Western District of North Carolina.
The lawsuit is part of a broader trend of insurance coverage disputes following major hurricanes, particularly involving how policies address business interruption losses and how those provisions are interpreted by insurers and the courts.
