N.J. Salon Says COVID-19 Closure Orders Caused Insured ‘Physical Damage’

CAMDEN, N.J. — A New Jersey beauty salon has sued its insurers in federal court, demanding coverage for losses it sustained after government orders issued in an attempt to stop the spread of the COVID-19 virus forced it to temporarily close.

In a complaint removed to the U.S. District Court for the District of New Jersey on July 30, Just Your Style Salon LLC says the civil authority orders triggered coverage under its commercial “all-risk” policy, issued by The Hartford Financial Services Group and Sentinel Insurance Company Ltd.

Defendants, however, denied the salon’s claim asserting “there was no direct physical …