STORY FROM: COVID-19 Litigation Report

Chicago Hair Salon Sues Liberty Mutual for COVID-19 Business Interruption Losses

CHICAGO — A Chicago hair salon has sued Liberty Mutual Insurance Co., accusing the insurer of breaching its policy by denying the salon’s claim for business interruption losses arising from the COVID-19 pandemic and related civil authority orders.

In a May 26 complaint filed in the U.S. District Court for the Northern District of Illinois, Siren Salon Inc. contends that it has suffered direct physical loss, triggering coverage under the policy.

The policy’s “Virus or Bacteria” exclusion does not apply to the salon’s business losses “because they are proximately caused by the COVID-19 Executive Orders issued in response to the ...

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