Pa. Health Club Not Covered for COVID-19 Losses, Federal Judge Rules

  • Order

PHILADELPHIA — A Pennsylvania federal judge has dismissed an athletic club’s COVID-19 coverage action against The Cincinnati Insurance Co., ruling that neither virus contamination nor government orders restricting its operations caused it to sustain physical loss or damage as required by the policy.

In a March 23 order, Judge Cynthia Rufe of the U.S. District Court for the Eastern District of Pennsylvania explained that Newtown Athletic Club needed to sustain tangible destruction to its property to trigger coverage.

The Cincinnati policy covered “accidental physical loss or accidental physical damage.” For coverage to be triggered under the Business Interruption or Extra …


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