Spas Urge 3rd Circ. To Revive Virus Coverage Denial Suit

By Matthew Santoni (October 26, 2021, 2:44 PM EDT) -- A group of spas in Pennsylvania, New Jersey and Delaware asked the Third Circuit to weigh in on whether Travelers Property Casualty Co. should cover business expenses they incurred during pandemic shutdowns, arguing that the narrow relief they sought isn't barred by their policy's "virus exclusion."

Toppers Salon & Health Spa Inc. wants the Third Circuit to reconsider a district court's denial of coverage, arguing that the language in its insurance policy is ambiguous enough to be read in the spas' favor for coverage of the operating expenses they incurred while subject to statewide shutdown orders.

"The primary issue in this...

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