Ariz. Gyms Hit Insurers, Agent with Class Action Seeking Coverage for COVID-19 Business Losses

PHILADELPHIA — Two Arizona gyms have filed a proposed class action against their insurers and an insurance agent, seeking coverage for losses they sustained when the COVID-19 pandemic and related civil authority orders forced them to temporarily close.

The May 19 complaint filed by JABZ Chandler II and Hayko Promotions LLC in the U.S. District Court for the Eastern District of Pennsylvania names as defendants Philadelphia Insurance Companies, Philadelphia Consolidated Holding Corp., Philadelphia Indemnity Insurance Co., and Maguire Insurance Agency, Inc.

The insurers denied the gyms’ claim for business loss and business interruption losses, asserting there was no physical …