Property insurance

Loss of computer coding

In Tektrol Ltd v International Insurance Co of Hanover Ltd [2004] EWHC 2473 (Comm), [2005] Lloyd’s Rep IR (forthcoming) the assured was unfortunate enough to lose all copies of a computer source code in two unrelated events. The question was whether one or both of those events was excluded from a business interruption policy. Langley J held that both events were excluded. The case turns on the specific wording used in the policy, although the case is of wider significance not least because it is increasingly common to exclude the consequences of software losses from business interruption policies.