Barber Shop Franchise COVID-19 Cover Suit Cut Out

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Law360 (Aug 27, 2021, 8:23 p.m. EDT) – The owner of 20 Great Clips franchised hair salons in Missouri and Illinois could not show that his decision to close the salons in response to the COVID pandemic 19 constitutes a “direct physical loss” of its property under its commercial insurance policy, a Missouri federal judge ruled.

Dismissing Gateway Clippers Holdings LLC’s lawsuit seeking coverage for pandemic-related business losses from West Bend Mutual Insurance Co., U.S. District Judge Henry Edward Autrey has followed in the footsteps of “many courts before him” in his interpretation of politics, stating on Thursday that nothing physical happened at the salons, and there was only one …

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