A federal district court recently held that an insurance policy’s “computer software exclusion” bars coverage of a wrongful death case which was based on the alleged failure to update GPS software.
The representative of a police officer’s estate sued a software company for failing to maintain and/or update the GPS software which they had provided for a police car. The officer’s estate claimed that this failure to maintain and/or update the software had led to the officer’s death.
At issue in the case was whether a coverage exclusion provision in the software company’s insurance policy would bar the claims brought by the police officer’s estate. The provision excluded claims “arising out of the rendering of or failure to render any service by [the insured] or on [the insured’s] behalf in connection with the selling, licensing, franchising or furnishing of the [the insured’s] computer software including electronic data processing programs, designs, specifications, manuals and instructions.”
In granting the insurer’s summary judgment motion, the court held that the “arising out of” language must be construed broadly, that the exclusion provision was applicable and the estate’s claims were barred. Here’s the opinion.
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