The year 2000 problem stems from decisions made in the early days of computer programming, when storage space cost thousands of dollars. There has been some discussion about the insurance industry's potential liability for year 2000 problems.
Most experts see little exposure for insurers.
There is no coverage for fixing computer defects. Year 2000 computer malfunctions may trigger lawsuits and loss of profits due to business disruptions but typical business insurance policies are unlikely to cover these losses. Year 2000 mistakes are unlikely to result in either injury or property damage. While there could be some exposure under directors and officers liability policies for breach of corporate duties, courts typically give management considerable leeway in making business judgments.