Health Club’s COVID-19 Coverage Action Dismissed for Lack of Physical Damage

INDIANAPOLIS — An Indiana federal judge has dismissed a health club’s COVID-19 coverage action against The Cincinnati Insurance Co., predicting the Indiana Supreme Court would rule that coronavirus particles on surfaces do not physically alter or damage property, as required for coverage.

In a March 1 order, Judge Robert L. Miller Jr. of the U.S. District Court for the Southern District of Indiana explained that the Indiana Court of Appeals and the 7th Circuit U.S. Court of Appeals have ruled that mere “loss of use” of a property does not trigger coverage and that a virus cannot cause physical loss …