Golden Corral Buffet Chain Loses Battle for COVID-19 Coverage

RALEIGH, N.C. — A North Carolina federal judge has awarded Illinois Union Insurance Co. judgment on the pleadings in a COVID-19 coverage action filed by the Golden Corral buffet restaurant chain, ruling there was no physical loss or damage to property, as required by the policy.

In a Sept. 8 order, Judge James C. Dever III of the U.S. District Court for the Eastern District of North Carolina explained that neither the presence of COVID-19 nor government closure orders cause “tangible, physical damage.”

In March 2020, Golden Corral was forced to suspend operations in all its corporate-owned locations and franchises, …