STORY FROM: COVID-19 Litigation Report

Chicago Salon Says COVID-19 Closure Orders Physically Impacted Insured Property

CHICAGO — A Chicago hair and skin salon has sued West Bend Mutual Insurance Co. in an attempt to recoup business interruption losses arising from the state governor’s closure of all non-essential businesses due to the COVID-19 pandemic.

In a June 25 complaint filed in the U.S. District Court for the Northern District of Illinois, Style Lounge Salon, Inc. d/b/a Salon Envy says the insurer denied its claim “with a cursory boilerplate letter,” without any reasonable explanation or investigation.

The policy covers “actual loss of business income you sustain due to the necessary suspension of your ‘operations’” when there ...

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