Ala. Gym’s Business Interruption Losses Encompassed by Virus Exclusion, Judge Rules



DOCUMENTS
  • Order


BIRMINGHAM, Ala. — An Alabama federal judge has dismissed a fitness center’s COVID-19 coverage action, finding the alleged losses fall within the ambit of the policy’s virus exclusion.

In a Feb. 11 order, Judge R. David Proctor of the U.S. District Court for the Northern District of Alabama explained that the COVID-19 virus was “the root cause” of Pure Fitness LLC’s losses; therefore, the virus exclusion bars coverage.

In a June 3 class action complaint, Pure Fitness LLC said it suffered “direct physical loss of or damage to property,” triggering coverage under its policy’s provisions for Loss of Business Income, …






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