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<br />ATY-0001-00-0116 Page 2 of 16 © 2016 Attorney Protective. All rights reserved.
<br />B. DEFINITIONS
<br />Wherever used in this Policy:
<br />1. Claim means a demand received by you for money or services 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 service of suit or the
<br />institution of an arbitration proceeding against the Insured or a request to toll the statute of limitations. Claim
<br />does not include a demand for money or services in criminal proceedings of any type brought against an Insured,
<br />or in any proceedings that seek injunctive, declaratory, equitable or non-pecuniary relief or remedies. Claim also
<br />means a demand received by you for money or services arising from a network incident.
<br />2. Claim expenses means:
<br />a. Reasonable and customary fees for necessary legal work performed by attorneys designated or approved
<br />by us;
<br />b. All other reasonable and necessary fees, costs and expenses approved by us and resulting from the
<br />investigation, adjustment, defense and appeal of a claim; and,
<br />c. Premiums for any appeal bond, attachment bond or similar bond in an amount not to exceed the
<br />unexhausted Limits of Liability of this Policy, provided 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 salaries or expenses of either your or our employees or attorneys.
<br />3. Commonly accepted technologies means current and conventional methodologies designed to secure
<br />confidential client information and the Insured’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 />associated input and output devices, 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 confidential or proprietary information not available to the general
<br />public received 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 client’s non-public 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 their lawful spouses, at the time 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 real estate interest;
<br />b. Votes, voted or will vote ten percent (10%) or more of the issued and outstanding 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 real
<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.
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