The pin on the cover do not simply push the arm, instead 'slide' it in some manner. Try lubricating somehow the arm inside hole or the pin, allowing to slide with each other !
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The large top cover has a small pin on the right side that fits into a receiving hole on the top of the printer. The pin pushes down an arm that deactivates the 'open cover' sensor. Your pin is not pushing the arm down. This can happen for a couple reasons, one, the pin could have sheared off (you won't see the pin at all, or the pin is no longer long enough), or two, the pin is not seating in the hole properly.
If not seated properly, you can realign the cover, and ensure the pin is seating into the hole. If the pin is no longer long enough to actuate the arm, simply fasten the sensor end of the arm to the contact in the top of the printer. You can use a hot glue gun, or even tape.
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