London Insurer Hits Tanning Co. With COVID-19 Coverage Suit

By Shawn Rice (July 30, 2021, 5:10 PM EDT) -- A spa and beauty company can't recover for lost revenue from shutting down under COVID-19 closure orders, a London insurance syndicate said in a California federal suit, as there wasn't any physical damage and the policy excludes coverage for seizure of illegal property.

Laguna Beach, California-based Sugared and Bronzed LLC doesn't seek costs to repair or replace its damaged contents when forced to close its 10 locations under government orders issued in California, Pennsylvania and New York, according to Catlin Syndicate Ltd. in Thursday's filing.

Catlin also argued the multiline property and liability policy precludes coverage for losses arising out of...

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