Salon Commercial Insurance Policies do not appear to provide coverage for salon owners impacted by the COVID-19 Virus. The reason for this is that Business Interruption is a follow form coverage. In other words, the proximate cause of loss must be as a result of a loss due to AN INSURED PERIL. Unfortunately, in our opinion, an Insured peril would not cover a pandemic, such as COVID-19.
Other coverage sections such as Contingent Business Interruption and Interruption by Civil Authority must be “triggered” from a loss, due to AN INSURED PERIL.
All Commercial Insurers are releasing their position on this exposure as the situation unfolds, and more information will be forthcoming.