The “Fax” Don’t Add Up for Coverage

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The California Court of Appeal, Second Appellate District, has held that the receipt of unsolicited faxes is not covered as “advertising injury” or “property damage” for insurance purposes. State Farm General Insurance Company v. JT’s Frame, Inc., 10 C.D.O.S. 1162 (January 27, 2010). Fax blasts (the sending of unsolicited faxes) that do not contain personal information do not violate a right to privacy, and therefore are not an advertising injury. In addition, because the practice of fax blasting is intentional, rather than accidental, any resulting property damage is not covered by insurance.

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