N.J. Hair Salon Loses Bid for COVID-19 Coverage at Appellate Level

TRENTON, N.J. — A New Jersey appellate court has ruled that a hair salon cannot recover COVID-19-related business interruption losses and expenses from Mercer Insurance Company of New Jersey because government orders requiring its temporary closure did not cause "direct physical loss of or damage to" property.

The New Jersey Superior Court, Appellate Division ruled on Jan. 25 that Appearance Workshop Inc. failed to allege “a detrimental physical alteration of some kind” or “a physical loss of the insured property.”

Plaintiff suspended operations in March 2020 in compliance with government orders issued to curb the spread of the COVID-19 virus. …


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