Illinois Fitness Center Chain Loses Bid for COVID-19 Coverage

  • Order

CHICAGO — The owner of the CFit Health/Charter Fitness chain cannot recoup its COVID-19-related losses from Twin City Fire Insurance Co. because it did not sustain “direct physical loss of or damage to” covered property, an Illinois federal judge has ruled.

In a July 8 order, Judge Gary Feinerman of the U.S. District Court for the Northern District of Illinois explained that “direct physical loss” requires some sort of change in the physical condition or location of the covered property, not a mere loss of use of that property.

In March 2020, state and local authorities issued orders prohibiting …


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