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anytime fitness business interruption class action lawsuit
(Photo Credit: Emagnetic/Shutterstock)

Anytime Fitness Insurance Coverage Class Action Lawsuit Overview:

  • Who: A federal judge dismissed a class action lawsuit lodged by Anytime Fitness against Markel Insurance Company. 
  • Why: Anytime Fitness alleged the insurance company breached its contract by denying its business interruption claim due to COVID-19, but the judge concluded that the insurer met the terms of the policy.
  • Where: The class action lawsuit was pending in Illinois federal court.

Anytime Fitness has lost a class action lawsuit it lodged against Markel Insurance Company by US District Judge Arenda L. Wright Allen. Markel denied Anytime Fitness’ business interruption insurance claim stating it had to close due to COVID-19.

“Plaintiffs cannot recover because they have not succeeded in establishing coverage under the applicable insurance policy,” the dismissal states.

Judge Allen said Anytime Fitness could not provide evidence that its properties were physically damaged or that they were “permanently dispossessed” of their properties, which were requirements for coverage under Markel’s policies.

Allen also noted that her ruling is consistent with other recent pandemic rulings.

“Many courts have rejected arguments that government shutdowns imposed during the COVID-19 global pandemic compel insurance reimbursement based on policies with language similar to that found here,” she said. 

“This court agrees with the conclusion of those courts that loss of usability is not a ‘direct or physical loss’ that entitles an insured to gain coverage from an insurer, particularly in the case of COVID-19 shutdowns.”

Anytime Fitness Class Action Markel’s Insurance Policy Covered Losses Due to COVID-19

Anytime Fitness claimed it purchased a commercial business interruption insurance policy from Markel and received the Health Clubs Commercial Property Elite Enhancement coverage with the policy. This enhancement protected Anytime Fitness against the actual loss of business income due to a suspension of their operations, alleged the health club.

In addition, Anytime Fitness allegedly had in effect “Extra Expense” coverage in which Markel promised to pay necessary expenses the company incurred during a period of restoration that it would not have otherwise incurred if there had been no physical loss to the property.

Anytime Fitness maintained that The Health Clubs Commercial Property Elite Enhancement endorsement also provides for additional “Civil Authority” coverage, under which Markel promised to pay for loss of business income it sustained caused by actions of civil authorities that prohibits access to the described premises.

The company claimed that it had to shut down operations to its franchises because of numerous civil orders by governmental authorities. 

“As a result of the orders of the various civil authorities, [Anytime Fitness] suffered, and/or continues to suffer, significant and injurious losses and expenses directly related to the inability to use the physical locations covered by the policy,” the Anytime Fitness class action lawsuit states.

Anytime Fitness said it reported a notice of loss to Markel on Apr. 18, 2020.

The denial came four business days after the notice of loss, which showed that Markel did not engage in a meaningful investigation of the claims or review of the policy, Anytime Fitness said.

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The plaintiffs are represented by Diandra S. Debrosse Zimmermann, Lisa B. Weinstein, April S. Rogers and Adam J. Gomez of Grant & Eisenhofer PA, L.N., Chandler Rogers of Rogers Law Group and Winston B. Collier of The Collier Firm.

The Anytime Fitness Insurance Coverage Class Action Lawsuit is Fountain Enterprises LLC, et al. v. Markel Insurance Co., Case No. 1:20-cv-03689, in the U.S. District Court for the Northern District of Illinois.


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