Seattle Gymnastics Academy Accuses Insurer of Denying COVID-19 Claim in Bad Faith

SEATTLE — A Seattle gymnastics academy has sued Sentinel Insurance Company Ltd., demanding coverage for business losses caused by the COVID-19 pandemic and related state and local shutdown orders.

In an amended complaint removed to the U.S. District Court for the Western District of Washington on June 8, Seattle Gymnastics Academy Inc. (SGA) accuses the insurer of breaching its policy by denying coverage for insured losses.

“Since closing its facilities, SGA has lost business income,” the lawsuit says. “SGA has attempted to mitigate its losses, and has incurred expense related to such attempts, by among other things running ‘virtual’ classes, …