Loss of Computer Data as Property Damage
The Eighth Circuit held that data are not tangible property under a computer policy and that loss of data from defective hardware and software was commercial (or economic) loss that could only be the subject of a contract action against the supplier. In Seagate Tech, Inc. v. St. Paul Fire & Marine Ins. Co., the Northern District Court of California found that incorporating a defective disk drive into a computer did not constitute physical property damage to the computers themselves.
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