Zurich beats NJ Gym’s COVID-19 insurance coverage suit

By Joyce Hanson (Jan. 4, 2022, 4:45 p.m. EST) – A federal judge in New York has ruled that the American Zurich Insurance Co. has no obligation to cover losses at a New Jersey gymnasium due to the pandemic of COVID-19, citing a dearth of allegations of tangible structural damage.

U.S. District Judge Nicholas G. Garaufis followed his reasoning in a similar case when he rendered his Dec. 29 decision in favor of Zurich’s offer to dismiss the class action suit proposed by KBH Sports Club LLC, saying the Business losses due to the coronavirus pandemic were considered physical damage.

Justice Garaufis considered that the allegation of “loss of use” in the case of KBH was materially identical to the one he addressed on …

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