So You Think You Know The Law

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Most general liability policies define “property damage” as “physical injury to tangible property” or “loss of tangible property that is not physically injured.”

TRUE. In this instance, Scottsdale argued that case law interpreted the definition of property damage as not including economic loss.


Strictly economic losses like lost profits, loss of goodwill, loss of the anticipated benefit of a bargain, and loss of an investment, do not constitute damage or injury to tangible property covered by a comprehensive general liability policy.

TRUE. However, certain types of economic losses can be used to measure the value of damage to tangible property.


A business license and a conditional use permit for use of real property are intangible property.

TRUE. However, courts are split on whether loss or modification of such a license or permit affecting the market value of real estate is “property damage.”

Please Note: This article is necessarily general in nature and is not a substitute for legal advice with respect to any particular case. Readers should consult with an attorney before taking any action affecting their interests.