Texas Barbershop Sues Insurers for COVID-19 Business Interruption Coverage

AUSTIN, Texas — A Texas barbershop has sued Twin City Fire Insurance Co., accusing it of systematically refusing to pay business losses arising from government stay-at-home orders issued in response to the COVID-19 pandemic.

In a May 22 class action complaint filed in the U.S. District Court for the Western District of Texas, Independence Barbershop LLC says Twin City and its parent corporation The Hartford Financial Services Group Inc. have breached the policy by systematically denying policyholders’ business interruption claims.

Independence maintains that the COVID-19 pandemic, and/or the orders of civil authority caused “direct physical loss of or damage to” …