Great Clips Franchises Lose Bid for Coverage in Mo. Federal Court

ST. LOUIS — A federal judge has dismissed a COVID-19 coverage action filed against West Bend Mutual Insurance Co. by the owner of 20 Great Clips hair salon franchises in Missouri and Illinois, finding there was no “direct physical loss” of property, as required by the policy.

In an Aug. 26 order, Judge Henry E. Autrey of the U.S. District Court for the Eastern District of Missouri further held that the policy’s virus exclusion bars coverage because the losses arise from the COVID-19 virus.

Gateway Clippers Holdings LLC filed the action, alleging that in March 2020, it closed all of …