Property damage coverage responds to physical injury to tangible property including loss of use, and to loss of use of undamaged tangible property. Purely economic loss is generally excluded.
Whether data and software constitute tangible property is contested.
Alternative Names:
Property Damage, PD Claim
Why it Matters?
The tangible property requirement excludes purely economic loss, which is the boundary separating property damage claims from business interruption and consequential loss. Whether electronic data qualifies as tangible property has produced substantial litigation, with most courts holding it does not, which is why cyber policies exist to address exposure general liability does not cover.
Frequently Confused with
Related terms
Frequently asked questions
Is electronic data tangible property?
Does property damage include loss of use?
