# Judge: Computer Data Loss Must be Covered 

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An Arizona federal judge has held that a property insurance policy covering physical damage covers business losses from loss of computer data, access, use and functionality.
The ruling came as Senior Judge Alfredo Marquez of the U.S. District in Arizona granted summary judgment in part for computer distributor Ingram Micro and denied summary judgment to American Guarantee & Liability Insurance Co. (AGLIC), which filed the declaratory judgment action.

AGLIC filed the action on April 15, 1999, after Ingram sought coverage under a property damage policy from business and service interruptions resulting from a power outage at the company‘s Arizona facility in 1998.

The outage shut down Ingram‘s computer systems and although service was restored within a half hour, three mainframe computers remained inoperable because programming in formation was lost.