14. What Pure Economic Loss cover does the policy provide? (Pure financial loss)

  • 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.
General Liability