STORY FROM: COVID-19 Litigation Report

Pa. Tanning Salon Says COVID-19 Closure Orders Caused Insurable Property Damage

PHILADELPHIA — A Pennsylvania tanning salon has filed a proposed class action against Atain Specialty Insurance Co., seeking coverage for business interruption losses arising from COVID-19 civil authority orders, which temporarily closed all “non-essential businesses.”

In a May 28 complaint filed in the U.S. District Court for the Eastern District of Pennsylvania, Sunsations Tanning Salon LLC contends that it has suffered direct physical damage to its property, triggering coverage under its policy.

Atain denied Sunsations claim, contending that the tanning salon did not suffer direct physical damage to its property and that the policy’s virus exclusion clause applies.

Atain has ...

Associated Law Firms
Beasley Allen Crow Methvin Portis & Mlles
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Levin Sedran & Berman
Robert Pierce & Associates

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