Sibelco North America has filed a lawsuit against Zurich American Insurance Co., seeking over $130 million in damages following Hurricane Helene. The mining company claims the insurer failed to cover property damage and business losses sustained during the storm, which hit North Carolina in late September 2024.
Hurricane Helene struck the Spruce Pine area on September 27, bringing strong winds, flooding, and power outages. Sibelco reported that its pumphouses were flooded and its operations severely disrupted. The company says it submitted an insurance claim to Zurich American under a policy protecting multiple commercial properties, but the claim was denied.
The lawsuit, now in the U.S. District Court for the Western District of North Carolina after being moved from a local court, accuses Zurich American of breaching the contract and acting in bad faith. Sibelco is also raising allegations of unfair claims handling practices and deceptive trade. The mining company is asking for actual and compensatory damages, including attorney fees and pre- and post-judgment interest.
This case joins other legal disputes tied to Hurricane Helene in North Carolina. For example, a pottery company recently sued Travelers Insurance after its business interruption claim was denied. Courts in other states have also seen clashes over hurricane-related business interruption coverage. A New York appeals court, for instance, recently revived a lawsuit involving a solar company’s claim tied to Hurricane Maria.
These lawsuits highlight ongoing disagreements over how insurance policies cover storm damage and lost business income. Property owners often face challenges proving their claims or meeting specific policy requirements. As extreme weather events continue to affect communities, more disputes of this kind may arise.
For Sibelco, the stakes are high. The company aims to hold its insurer accountable for a significant financial loss caused by the storm’s impact on its mining operations in North Carolina. The outcome of this case could influence how similar claims are handled in the future.