- A pure economic loss arises where a third party suffers a loss without there being Injury or Damage.
- This cover can be found in the
- Pure Economic Loss extension
- Products Inefficacy extension
- Errors and Omissions extension
- Breach of Copyright extension
- Advertising Liability extension
- Pollution section – a smell coming from the Insured’s property could drive a neighbouring restaurant’s customers away without damaging property or injuring anyone
- The definition of “Damage” includes the loss of control of tangible property. This means that even in terms of Section A – Public Liability, there is some cover for a pure economic loss.
- E.g. After changing the access code to the customer’s digital safe, the Insured got distracted and forgot the code. Not able to access the contents of the safe, the customer suffered a loss of income.