A Pennsylvania court on Tuesday refused to dismiss a COVID-19 business interruption lawsuit filed by a gym against its insurer, stating that the business had adequately alleged "direct physical loss or damage" to its property. [' Brown & # 39 ;s Gym Inc. v Cincinnati Insurance Co. and CC Young and Henkelman Insurance.
Cincinnati had denied Brown's COVID-19 business interruption coverage on the grounds that no direct physical loss or damage had occurred.
The court disagreed. Although the policy does not include a virus exclusion, it does include a "communicable disease or virus" exclusion for other "coverage of crisis event communications costs," it said.
This created "a reasonable expectation from the gym that coronavirus-related damage would be covered by policy interruptions for business interruptions, but excluded from coverage for communication expenses for crisis events," it said, refusing to dismiss gymnastics contract violations and allegations of bad faith.
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A spokesman for Cincinnati Insurance and the high school attorney could not be reached for comment.
Earlier this month, Fireman & # 39 ;s Fund Insurance Co. The Walt Disney Co. sued over the extent of COVID-19 business interruptions. The insurer claims to pay the entertainment giant.
More insurance and risk management news about the coronavirus crisis here . Catalog