A North Carolina pottery company is suing Travelers, saying the insurer wrongly denied business interruption coverage after Hurricane Helene shut down its Asheville operations.
East Fork Pottery, LLC, a limited liability company based in Buncombe County, filed its complaint on August 5, 2025, in the United States District Court for the Western District of North Carolina. The defendant, The Phoenix Insurance Company - better known in the market as Travelers - faces allegations that it failed to honor a Deluxe Property Insurance Policy after the hurricane struck on September 27, 2024.
According to the complaint, East Fork was insured under Travelers’ Deluxe Property Insurance Policy No. Y-630-3Y624710-PHX-24. That policy included coverage for business income and extra expenses, as well as a flood endorsement and a civil authority clause. East Fork claims that when Hurricane Helene hit Asheville, the storm’s winds downed thousands of trees near its properties. In the aftermath, local, state, and federal civil authorities imposed travel bans and road closures, blocking access to the company’s insured locations.
East Fork says it promptly filed a claim with Travelers. The insurer assigned three claim numbers - F4S3375, F4S3378, and F4S3379 - and sent adjuster Anthony Morris to Asheville on October 23, 2024. Over the next two months, Travelers sent five coverage letters, dated October 30, October 31, November 6, and two on December 27, 2024. The December 27 letters denied coverage for East Fork’s business interruption and extra expense losses. East Fork alleges Travelers relied on “carefully selected, and distorted, policy language” and disregarded other provisions that, according to East Fork, should have triggered coverage.
The complaint also points to a disputed statement in Travelers’ denial. East Fork says Travelers falsely claimed that Jenny Hassler, its Director of Finance, told the adjuster that the business stopped due to off-premises utility damage caused by flood waters. East Fork insists Hassler never made such a statement. The company, along with its insurance broker, Sam Stickney of Insurance Services of Asheville, sent several emails to Travelers challenging the denial and specifically asked the insurer to evaluate the claim under the policy’s civil authority provision. East Fork says those requests went unanswered.
After getting nowhere, East Fork hired counsel, who sent a detailed letter to Travelers’ adjuster on April 28, 2025. The letter cited the North Carolina Supreme Court’s December 13, 2024, decision in North State Deli, LLC v. Cincinnati Ins. Co., and a federal case where an insurer was hit with treble damages and attorneys’ fees for similar conduct. According to the complaint, Travelers never responded to the letter or to follow-up emails sent on May 22 and June 10, 2025.
East Fork is seeking about $1,125,000 in damages, plus interest, and is also asking for treble damages and attorneys’ fees under North Carolina law. The company says it met all its obligations under the policy and that Travelers failed to provide the coverage it promised.
It’s worth noting that these are East Fork’s allegations, not established facts - Travelers has not yet filed a response in court. The outcome will depend on how the court interprets the business interruption, extra expense, and civil authority language in the policy, and whether Travelers’ claims handling met North Carolina’s legal standards.
For insurance professionals, this case is a timely reminder of the challenges and scrutiny that come with handling business interruption claims after major disasters. The industry will be watching closely as East Fork Pottery v. The Phoenix Insurance Company moves forward.
