Yes, you are probably right. You can jump that switch at the washer plug end as a test, just connect the two wires that are not green. That will simulate a closed lid.
Another way is to stick your fingers in there and push up on the bottom of the grey lid switch itself and see if it clicks when you depress the paddle with a small screwdriver or other slim item. You don't want to let it spin much while doing this as if the basket moves dramatically your hand will regret it. I'd try without it set to run first and see if it clicks, if so the switch has split horizontally and the 2 halves are separating.