N.J. Sports Club Accuses Insurer of Charging Excessive Premiums, Wrongly Denying COVID-19 Coverage

NEW YORK — A New Jersey sports club and its owner have sued American Zurich Insurance Co., accusing it of wrongly denying its claim for coverage of COVID-19-related losses, while continuing to charge excessively high premiums.

In a Nov. 15 complaint filed in the U.S. District Court for the Eastern District of New York, KBH Sports Club LLC and its owner, David Chung, contend that their losses were caused by government closure orders, rather than the virus itself, and therefore do not fall within the policy’s virus exclusion.

Plaintiffs further contend that the pandemic and the resulting government orders …