Insurance 101 – Chapter 5 – Volume 26 – Loss of Computer Data as Property Damage

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.

The following video was adapted from my book, “Insurance Claims A Comprehensive Guide” Published by the National Underwriter Company and is available at the Zalma Insurance Claims Library

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The author and publisher disclaim any liability, loss, or risk incurred as a consequence, directly or indirectly, of the use and application of any of the contents of this blog. The information provided is not a substitute for the advice of a competent insurance, legal, or other professional. The Information provided at this site should not be relied on as legal advice. Legal advice cannot be given without full consideration of all relevant information relating to an individual situation.

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