Do Business Insurance Cover Electronic Data Loss Caused by Defective Software?
Martha L. Arias, Immigration and Internet Law Attorney, Miami; IBLS Director Monday, March 29, 2010 The software industry is booming worldwide. China’s software industry, one of the fastest growing markets, generated US$80.8 billion (580 billion Yuan) in revenue in 2007. Security software is the most profitable among software categories. Experts predict that the security software industry in China will grow at a compound average growth rate of 10.5 from 2007 to 2012. The panorama is similar for the United States (US) software industry; Microsoft, IBM, Maximizer Software, and other US software companies reported record profits for the year 2007. Hence, as the software industry expands so does consumer complaints. If software products are defective and damage consumers’ computers or software, who does pay for these damages? Answers to this question depend on the type of relation between consumers and software company. For example, whether the software was specifically made for the consum
