LA Fitness Sues Insurers for Coverage of COVID-19 Business Losses

LOS ANGELES — LA Fitness has sued its insurers in an attempt to recoup losses it sustained when it was forced to close its gyms across the United States in compliance with state and local COVID-19 closure orders, arguing that it sustained “direct physical loss of or damage” to its insured properties.

In a complaint removed to the U.S. District Court for the Central District of California on Oct. 23, Fitness International LLC accuses the insurers of denying its coverage claims in bad faith, breaching the policy at issue.

Named as defendants are Zurich American Insurance Co., HDI Global Insurance …