Snap Fitness Centers Not Covered for COVID-19 Losses, Ill. Federal Judge Rules

CHICAGO — An Illinois federal judge has dismissed a COVID-19 coverage action filed by the owners of three Snap Fitness Centers, finding they failed to allege “direct physical loss of or damage” to property, as required by the policy issued by Mt. Hawley Insurance Co.

On May 4, Judge Mary M. Rowland of the U.S. District Court for the Northern District of Illinois held that COVID-19 contamination of the insured properties did not alter their physical structure because the virus can be easily cleaned.

Plaintiffs operate franchises of Snap Fitness Center, a 24-hour gym. Byberry Services and Solutions LLC operates …