Insurers Deny Covid Business Interruption Claims

In one recent case, Life Time Inc. sued insurance company Zurich over alleged failure to pay all but “a measly quarter of 1% (0.28%)” of a policy’s limit.” The complaint maintains the company is entitled to coverage for 150 fitness centers nationwide, with $1 million in coverage for each location, but Zurich maintains there is $1 million limit for all the claims combined. Hundreds of coverage lawsuits have been filed in the face of the Covid pandemic and consequent business shutdowns, reports Bloomberg Law. A key point of dispute in many of these suits is whether or not what has occurred constitutes physical property damage.