As a lawyer I would assert that ECU did not breach the contract because of the 'act of god' exception under contract law and that now VT is the party making an initial breach. VT actually collected on it's insurance policy so they didn't suffer any substantial loss in the eyes of the law.
According to Black’s Law Dictionary, an “act of God” is:
"An overwhelming, unpreventable event caused exclusively by forces of nature, such as an earthquake, flood, or tornado."
Also termed "act of nature," the definition has been statutorily broadened to include all natural phenomena that are exceptional, inevitable, and irresistible, the effects of which could not be prevented or avoided by the exercise of due care or foresight.
In legal usage throughout the English-speaking world, an act of God is a natural hazard outside human control, such as an earthquake or tsunami, for which no person can be held responsible. An act of God may amount to an exception to liability.
In the law of contracts, an act of God may be interpreted as an implied defense under the rule of impossibility or impracticability. If so, the promise is discharged because of unforeseen occurrences, which were unavoidable and would likely result in insurmountable delay, expense, or other material breach.