Hair salon chain hopes class action will force pandemic payouts from insurance companies

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The claim was launched by Great Clips, which owns and operates eight hair salons across British Columbia and sought insurance relief in March as the pandemic gained momentum and temporarily shut down their business

This translation has been automatically generated and has not been verified for accuracy.A chain of hair salons is at the centre of a lawsuit that their lawyer hopes will become a class action with more businesses suing to force insurance companies to pay out claims for the cessation of business as a result of the pandemic.

The claim notes that despite such past Canadian outbreaks as SARS and H1N1, Great Clips’s policy does not offer coverage due to a pandemic outbreak. The claim filed by Mr. Merchant lists more than two dozen insurance companies as defendants, and seeks an order certifying the class action and appointing Great Clips as a representative plaintiff. It also seeks declarations from the court that each of the defendants breached their contracts and common-law duty by not providing business-interruption insurance and acted in bad faith.

“As this is potentially in litigation, we cannot provide further details at this time. We continue to provide support and relief to our customers wherever we can,” Ms. Beaudry said in a statement.

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