Philadelphia Hair Salon Says COVID-19 Orders Caused ‘Direct Physical Damage’

PHILADELPHIA — A Philadelphia hair salon has filed a proposed class action against Erie Insurance Exchange, seeking coverage for business interruption losses arising from COVID-19 civil authority orders, which temporarily closed all “non-essential businesses,” including the plaintiff’s two locations.

In a June 10 complaint filed in the U.S. District Court for the Eastern District of Pennsylvania, Sulimay’s Hair Design Inc. says it has suffered direct physical damage to its property, triggering coverage under its policy.

Erie denied Sulimay’s claim, contending that the salon did not suffer direct physical damage to its property and that the loss falls under the policy’s …