N.J. Salon Says COVID-19, Closure Orders Caused ‘Direct Physical Loss of or Damage To’ Property

TRENTON, N.J. — A New Jersey hair salon has sued Mid-Century Insurance Co., demanding coverage for business interruption losses it sustained when government closure orders issued in response to the COVID-19 pandemic rendered it “unable to use its property for its intended purpose.”

In a class action complaint removed to the U.S. District Court for the District of New Jersey on Sept. 3, Cammie’s Spectacular Salon contends that the presence of COVID-19, and/or the state governor’s closure orders caused it to sustain “direct physical loss of or damage to” its insured property, rendering it completely unusable.

The salon argues that …