Life Time claims over $200M in losses due to COVID-19, sues insurer for not covering

Life Time is suing its insurer over not covering its COVID-19 losses, according to a lawsuit filed in Hennepin County District Court last week.

In the lawsuit, Life Time says it has lost more than $200 million since the pandemic began due to state and local restrictions.

According to the lawsuit, Life Time says it purchased $350 million in limits from Zurich American Insurance Company’s "Edge Global" Policy for this year, which specifically included special coverage limits for interruptions from communicable diseases.

However, when state and county governments began putting business restrictions in place, Zurich allegedly only offered $1 million in coverage to Life Time to cover all locations. Life Time says Zurich’s policy provides $1 million in coverage for each location insured, for which Life Time has more than 150 across the country.

Life Time is seeking over $130 million in damages from Zurich for breaking the contract.

The lawsuit says Hennepin County has jurisdiction for the case because the county has 13 Life Time centers and facilities, which is more insured facilities than Life Time has in any other U.S. county.

KSTP has reached out to Zurich American Insurance Company for comment on the lawsuit but has not yet heard back.