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Article: Computer virus damage covered: Court.(World)(Tektrol Ltd. and International Insurance Co. of Hanover Ltd.)
- Article from:
- Business Insurance
- Article date:
- August 15, 2005
- Author:
CopyrightCOPYRIGHT 2005 Crain Communications, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Byline: SARAH VEYSEY
LONDON-A company that lost vital software source code because of a computer virus can claim from its insurers for business interruption losses, the U.K. Court of Appeal has ruled.
Exclusionary language in the insurance policy does not explicitly cover computer viruses and, therefore, the policy wording should be interpreted in favor of the policyholder, the court ruled.
Despite the pro-policyholder ruling, companies that rely heavily on computer software should ensure that their business interruption policies explicitly include computer viruses if they want comprehensive coverage, legal observers say.
In a ruling ...