Calif. Fitness Club Says COVID-19 Closure Orders Caused Insured Physical Damage

PHILADELPHIA — A California racquet and fitness club that was forced to temporarily close during the COVID-19 pandemic has sued Philadelphia Indemnity Insurance Co. on behalf of itself and other policyholders for coverage of business interruption losses.

In a June 8 class action complaint filed in the U.S. District Court for the Eastern District of Pennsylvania, Auburn Racquet Club Inc. and Jack Drimmer d/b/a Pleasure Hills Real Estate Co. says government closure orders have caused it and other insureds to sustain “direct physical loss of or damage to covered property” that is covered under their policies.

PICC has denied the …