Wash. D.C. Beauty Salons Sue Insurer After Being Forced to Shutter Due to COVID-19

PHILADELPHIA — Two high-end Washington, D.C., beauty salons have sued Erie Insurance Exchange in federal court, accusing it of wrongly denying their claims for business losses arising from COVID-19 governmental closure orders.

In an April 21 complaint filed in the U.S. District Court for the Eastern District of Pennsylvania, Ian McCabe Studio LLC and Ian McCabe Studio at Union Market LLC maintain that they faithfully paid premiums to Erie for additional coverages in the event of business interruption or closures by order of civil authority.

“Under the Policy, insurance is extended to apply to the actual loss of business …