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B. DEFINmONS
<br />Wherever used in this Pol icy:
<br />1. Claim means a demand rece ived by you for money or serv ices arising from an act, error or omission in your
<br />performance of legal services for others . A claim shall include, but is not limited to, the serv ic e of su it or the
<br />institution of an arbitrat ion proceed in g against the Insured or a request to toll the statute of limitations. Claim
<br />does not include a demand for money or services in crimina l proceedings of any type brought aga inst an Insured ,
<br />or in any proceed in gs that seek injunctive, declaratory, equitab le or non-pecuniary relief or remedies . Claim also
<br />means a demand received by you for money or serv ices ar ising from a network incident.
<br />2. Claim expenses means:
<br />a. Reasonable and customary fees for necessary legal work performed by attorneys des ignated or approved
<br />by us ;
<br />b. All other reasonable and necessary fees, costs and expenses approved by us and resu lt ing from the
<br />investigation, adjustment, defense and appea l of a claim ; and,
<br />c. Premiums for any appeal bond, attachment bond or simil ar bond in an amount not to exceed the
<br />unexhausted Limits of Liabil ity of this Po li cy, prov ided that we have no obligation to apply for or furnish
<br />any such bond.
<br />Claim expenses do not include crisis event expenses, disciplinary proceeding expenses, privacy
<br />incident expenses , or sa laries or expenses of either your or our employees or attorneys.
<br />3. Commonly accepted technologies means current and convent ional methodologies des igned to secure
<br />confidential client information and the lnsured's computer system that are appropriate to the size and
<br />complexity of the Named Insured including, but not limited to, utilization of i.) firewall protection; ii.) wireless
<br />encryption, such as Wi-Fi Protected Access (WPA); iii.) password protection; and, iv .) a destruction protocol
<br />designed to remove or destroy confidential client information on any retired computer system , facsimile
<br />or copier machine.
<br />4. Computer system means any device that is used to work with client data, including, but not limited to, desktop
<br />computers, laptop computers, tablet computers, smartphones and software, including the data they contain, and
<br />assoc iated input and output dev ices , terminal devices, data storage devices, network equipment, components,
<br />firmware and electronic backup facilities, including systems accessible through the Internet, intranets, extranets,
<br />or virtual private networks when such are used to work with client data.
<br />5. Confidential client information means confidentia l or proprietary information not available to the genera l
<br />public rece ived by an Insured in connection with an act, error or omission in the performance of legal services
<br />to others regarding:
<br />a. An individual cl ient's non-pub lic personal or financial information, or protected health information; or,
<br />b. An entity or organization client's commercial information.
<br />6. Controlled enterprise means any existing or prospective entity, business enterprise, or real estate interest,
<br />other than the Named Insured , in which any Insured and/or their lawful spouse, or an accumulation of
<br />Insureds and/or the ir lawful spouses, at the t ime the wrongful act occurs or the claim is made:
<br />a. Owns, owned or will own ten percent (10%) or more of the enterprise, entity, or rea l estate interest;
<br />b. Votes, voted or will vote ten percent (10%) or more of th e is sued and outstand ing voting stock or elects
<br />ten percent (10%) or more of the directors in an incorporated entity;
<br />c. Is or was entitled to receive ten percent (10%) or more of the profits of an unincorporated enterprise or
<br />entity;
<br />d. Holds, held or will hold ten percent (10%) or more of the debt instruments of the entity, enterprise, or rea l
<br />estate interest; or,
<br />e. Is or was entitled to directly control, operate or manage the entity or business enterprise, or act as a
<br />general partner of a limited partnership, managing general partnership, or comparable position in any other
<br />business entity or enterprise.
<br />ATY -0001-00-0116 Page 2 of 16 © 2016 Attorney Protective . All rights reserved.
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