A group of Kansas and Missouri hair salon and restaurant owners can proceed with a lawsuit trying to make their insurance company pay for the income they missed out on during COVID-19 government shutdown orders, a judge ruled Wednesday.
The businesses adequately alleged — for now at least — that they ought to be covered by their “all-risk” insurance policies, Western District of Missouri Judge Stephen Bough ruled after combing through insurance policy wording.
The ruling could have broad implications as more businesses sue their insurance carriers for denying similar claims, observers say.
Business interruption insurance replaces lost income when a business has to temporarily close its doors. The policies kick in when there’s “direct physical loss or damage.” That typically applies to events