Calif. Gym Owner Not Covered for COVID-19 Losses, Federal Judge Rules

SACRAMENTO, Calif. — A California federal judge has granted Zurich American Insurance Co. judgment on the pleadings in a fitness center owner’s COVID-19 coverage action, ruling that it did not sustain “direct physical loss of or damage to property,” as required by the policy.

In a Dec. 30 order, Judge Jennifer Thurston of the U.S. District Court for the Eastern District of California explained that mere loss of use caused by government stay-at-home orders, without physical damage, does not trigger coverage.

Body Xchange Sports Club LLC operates six fitness centers in Bakersfield, Calif. In March 2020, the company temporarily closed …


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