In an important ruling this summer, the Eighth Circuit Court ofAppeals decided that an online marketing firm was entitled todefense cost coverage under two different types of liabilitypolicies 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 generalliability insurance policy and a separate Information and NetworkTechnology errors and omissions liability policy in circumstanceswhere the online marketer company installed software on aconsumer's computer system, allegedly corrupting the consumer'soperating system.

THE POLICIES

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