Life Time Sues Insurer for Covid Losses
Life Time’s club in Edina.

Life Time Sues Insurer for Covid Losses

The Chanhassen-based fitness chain said its insurer declined to cover most of its pandemic-related losses.

Life Time Inc. is suing its insurer for allegedly not covering losses related to Covid-19 and mandatory government shutdowns.

In an Aug. 19 lawsuit filed in Hennepin County District Court, the Chanhassen-based fitness chain said it lost more than $200 million as a result of the pandemic. Consequently, Life Time filed an insurance claim for the losses but received just a fraction of that amount, the Star Tribune reported, citing the lawsuit. According to the paper, Life Time was offered just $1 million for pandemic-related losses.

As a result, the fitness chain is suing Illinois-based Zurich American Insurance Co. for $130 million. In the suit, Life Time said that’s based on the damages it incurred due to the insurer’s breach of contract.

Life Time’s suit is likely one of many that will emerge out of the pandemic. Some insurance contracts explicitly state that viruses don’t qualify businesses for payouts. But, barring those types of exclusions, the presence of the virus on surfaces could likely be considered property damage, as reported in TCB’s recent feature on coronavirus-related litigation.