4th Cir. Upholds Dismissal of Anytime Fitness Franchises’ COVID-19 Coverage Action

RICHMOND, Va. — A 4th Circuit U.S. Court of Appeals Panel has upheld dismissal of a COVID-19 coverage action filed by the owners of several Anytime Fitness gym franchises, affirming that economic losses caused by pandemic-related closure orders do not cause “direct physical loss of or damage to” property.

In a Nov. 2 opinion, the appellate panel agreed with the U.S. District Court for the Eastern District of Virginia that coverage is not triggered absence any material destruction or material harm to the insured premises.

The franchise owners sued Markel Insurance Co. after the insurer refused to reimburse them for …


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