Ky. Gym Suffered No ‘Direct Physical Loss’ of Property, Federal Judge Rules

LEXINGTON, Ky. — A Kentucky gym cannot recoup COVID-19 business interruption losses from West Bend Insurance Co. because purely economic losses do not qualify as “direct physical loss of or damage to property,” a federal judge has ruled.

In a June 10 order, Chief Judge Danny C. Reeves of the U.S. District Court for the Eastern District of Kentucky explained that “without allegations of tangible, physical loss or damage to the covered premises or its surroundings,” LexFit LLC has not shown that it is entitled to relief.

LexFit operates a fitness center in Lexington, Ky. Near the beginning of the …