In an important ruling this summer, the Eighth Circuit Court of Appeals decided that an online marketing firm was entitled to defense cost coverage under two different types of liability policies for the same spyware download incident.
On July 23, 2010, ruling in Eyeblaster Inc. v. Federal Ins. Co., the court found concurrent coverage under both a general liability insurance policy and a separate Information and Network Technology errors and omissions liability policy in circumstances where the online marketer company installed software on a consumer's computer system, allegedly corrupting the consumer's operating system.
THE POLICIES
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