By Riley Murdock (May 6, 2022, 6:37 PM EDT) – The owners of three Snap Fitness locations have lost their bid for insurance coverage from an RLI Corp. unit for losses they suffered during the pandemic when an Illinois federal judge ruled that COVID-19 droplets on surfaces did not trigger insurance coverage.
US District Judge Mary M. Rowland tossed the case with prejudice, citing a pair of Seventh Circuit rulings that found that a policyholder has to show its premises were physically altered and that COVID-19 molecules do not rise to that level, according to a 13-page order entered Wednesday.
The appellate court ruled in East Coast Entertainment of Durham Inc. v. Houston …
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