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The court does not dismiss the hairdresser's COVID-19 case against Hartford



A federal district court in Austin, Texas, on Wednesday refused to dismiss a COVID-19 business interruption lawsuit filed by a hairdresser against a Hartford Financial Services Group Inc. based on language in its virus exclusion that provides up to 30 days of business interruption coverage. .

U.S. District Court & # 39; s decision in Independence Barbershop, LLC, individually and on behalf of any other similar situation against Twin City Fire Insurance Co. joins a handful of other decisions, most of them state courts, which have refused to dismiss the disputes.

By refusing to dismiss disputes filed by the Austin barbershop and grooming supplier against the insurer to deny its business interruption claim, the decision focuses on a section of its virus exclusion that allows up to 30 days coverage for business interruption over "loss or damage to property" of … virus "causes a shutdown of business coverage applies. "

Time element coverage" is a term in the art of the insurance industry that refers to coverage measured in time, including business interruptions and civilian authorities' coverage ", the decision states.

"The Court considers that the plaintiff has invoked a reasonable claim for exemption from coverage" under this section, the decision states.

"However, the Court considers that Virus approval contains a valid exclusion clause which precludes recovery" under these other sections of the virus endorsement, provided for in the decision.

The Court also refused to reject the plaintiff's proposal to certify the case. as a class action, stating that "will decide the issue of class certification at the appropriate time."

Lawyers in the case did not respond to requests for comment.

More insurance and risk management news about the coronavirus crisis here [1

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