Pa. Hair Salon Loses Bid for COVID-19 Business Interruption Coverage



DOCUMENTS
  • Order


PHILADELPHIA — A federal judge has dismissed a COVID-19 insurance action filed by the owner of a hair salon against Hartford Underwriters Insurance Co., ruling that the mere threat of the virus, without more, does not cause “direct physical loss of or direct physical damage,” as required by the policy.

On April 28, Judge Mitchell Goldberg of the U.S. District Court for the Eastern District of Pennsylvania concluded that government closure orders limiting plaintiff’s operations did not cause “a distinct, demonstrable, physical alteration” of property.

“Plaintiff has not plausibly alleged physical loss or physical damage within the meaning of the …






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