MULTIMEDIA LIABILITY COVERAGE

Subject to the limits of liability and retention specified in the Schedule, the Company will pay:

• Damages which an insured becomes legally obligated to pay; and
• Defense costs,resulting from a claim for an actual or alleged multimedia peril, provided that:
• Such claim is first made against the insured during the POLICY period;
• The insured reports such claim in writing to the Company no later than sixty (60) days after the claim is first made against the insured; and
• The multimedia peril takes place or first commences on or after the prior acts date.

SECURITY AND PRIVACY LIABILITY COVERAGE

Subject to the limits of liability and retention specified in the Schedule, the Company will pay:

• Damages which an insured becomes legally obligated to pay; and
• Defense costs, resulting from a claim for an actual or alleged security and privacy wrongful act, provided that:
• Such claim is first made against the insured during the POLICY period;
• The insured reports such claim in writing to the Company no later than sixty (60) days after the claim is first made against the insured; and
• The security and privacy wrongful act takes place or first commences on or after the prior acts date.

PRIVACY REGULATORY DEFENSE AND PENALTIES COVERAGE

Subject to the limits of liability and retention specified in the Schedule, the Company will pay:

• Regulatory fines and penalties and/or any regulatory compensatory award which an insured becomes legally obligated to pay; and
• Defense costs, directly resulting from a claim for an actual or alleged security breach or privacy breach, provided that:
• Such claim is first made against the insured during the POLICY period;
• The insured reports such claim in writing to the Company no later than sixty (60) days after the claim is first made against the insured; and
• The security breach or privacy breach takes place or first commences on or after the prior acts date.

PRIVACY BREACH RESPONSE COSTS, NOTIFICATION EXPENSES, AND CUSTOMER SUPPORT AND CREDIT MONITORING EXPENSES COVERAGE

Subject to the limits of liability and retention specified in the Schedule, the Company will pay reasonable privacy breach response costs, notification expenses, and/or customer support and credit monitoring expenses which you incur during the POLICY period as a direct result of an adverse media report, security breach or privacy breach, provided that:

• The adverse media report, security breach or privacy breach takes place or first commences on or after the prior acts date; and
• You report the adverse media report, security breach or privacy breach in writing to the Company during the POLICY period and no later than 60 days after the date an insured first discovers the adverse media report, security breach or privacy breach.

BRANDGUARD COVERAGE

Subject to the limits of liability and retention specified in the Schedule, the Company will reimburse you for your provable and ascertainable brand loss, which you sustain during the period of indemnity, but after the waiting period, as a direct result of an adverse media report or notification, provided that:

• The adverse media report or notification results from a privacy breach or security breach that takes place or first commences on or after the prior acts date;
• You report the brand loss in writing to the Company during the POLICY period and no later than 60 days after the date you first discover the actual or potential brand loss; and
• You provide clear evidence that the brand loss directly resulted from the adverse media report or notification.

NETWORK ASSET PROTECTION COVERAGE

• Loss of Digital Assests

Subject to the limits of liability and retention specified in the Schedule, the Company will reimburse you for digital assets loss and/or special expenses which you incur during the POLICY period as a direct result of damage, alteration, corruption, distortion, theft, misuse, or destruction of digital assets, provided that:

• Such damage, alteration, corruption, distortion, theft, misuse, or destruction of digital assets is directly caused by a covered cause of loss takes place or first commences on or after the prior acts date;
• You report the covered cause of loss in writing to the Company during the POLICY period and no later than 60 days after the date an insured first discovers the covered cause of loss; and
• You provide clear evidence that the digital assets loss and/or special expenses directly resulted from the covered cause of loss.

The Company will pay digital assets loss and/or special expenses for a period of up to twelve (12) months following the discovery of the damage, alteration, corruption, distortion, theft, misuse, or destruction of digital assets.

• Non-Physical Business Interruption and Extra Expense

Subject to the limits of liability and retention specified in the Schedule, the Company will reimburse you for income loss, interruption expenses and/or special expenses which you incur during the period of restoration, but after the waiting period, as a direct result of a total or partial interruption, degradation in service or failure of an insured computer system, provided that:

• Such total or partial interruption, degradation in service or failure of the insured computer system is directly caused by a covered cause of loss that takes place or first commences on or after the prior acts date;
• You report the covered cause of loss in writing to the Company during the POLICY period and no later than 60 days after the date an insured first discovers the covered cause of loss; and
• You provide clear evidence that the income loss, interruption expenses and/or special expenses directly resulted from the covered cause of loss.

CYBER EXTORTION COVERAGE

Subject to the limits of liability and retention specified in the Schedule, the Company will reimburse you for cyber extortion expenses and/or cyber extortion monies that you pay as a direct result of a cyber extortion threat, including a demand for cyber extortion monies, provided that:

• Such cyber extortion threat is first made against an insured on or after the prior acts date;
• You report the cyber extortion threat in writing to the Company during the POLICY period and no later than 60 days after the date the cyber extortion threat is made against an insured; and
• You provide clear evidence that the cyber extortion expenses and/or cyber extortion monies directly resulted from the cyber extortion threat.

Cyber extortion expenses and/or cyber extortion monies shall not be paid without the Company’s prior consultation and written authorization. You must make every reasonable effort to notify local law enforcement authorities and the Federal Bureau of Investigation, or similar equivalent foreign agency, before surrendering any cyber extortion monies in response to a cyber extortion threat.

CYBER TERRORISM COVERAGE

Subject to the limits of liability and retention specified in the Schedule, the Company will reimburse you for income loss, interruption expenses, and/or special expenses which you incur during the period of restoration, but after the waiting period, as a direct result of a total or partial interruption, degradation in service, or failure of an insured computer system, provided that:

• Such total or partial interruption, degradation in service, or failure of the insured computer system is directly caused by an act of cyber terrorism that takes place or first commences on or after the prior acts date;
• You report the act of cyber terrorism in writing to the Company during the POLICY period and no later than 60 days after the date an insured first discovers the act of cyber terrorism; and
• You provide clear evidence that the income loss, interruption expenses and/or special expenses directly resulted from the act of cyber terrorism.

PCI DSS ASSESSMENT COVERAGE

Subject to the limits of liability and retention specified in the Schedule, the Company will pay:

• A PCI DSS assessment which an insured becomes legally obligated to pay; and
• Defense costs, Resulting from a claim for an actual or alleged security breach or privacy breach, provided that:
• Such claim is first made against the insured during the POLICY period;
• The insured reports the claim in writing to the Company no later than sixty (60) days after the claim is first made against the insured; and
• The security breach or privacy breach takes places or first commences on or after the prior acts date.

Free Legal Services*

The following nine services are available at no charge from your plan attorney.

• Unlimited initial phone consultations during business hours for new legal matters
• Attorney will review as many as 5 independent documents each quarter. These include business documents, contracts, signed or unsigned, up to 10 pages each.
• Initial telephone calls made on behalf of your business if deemed appropriate by your plan attorney (two per month). Follow up calls are made at the guaranteed low hourly rate.
• Initial letters written on behalf of your business if deemed appropriate by your plan attorney. Three per month for new subjects; follow up letters are written at the guaranteed low hourly rate.
• Initial collection letters are limited to 10 per quarter. More than 10, and any follow up letters, are written at the guaranteed low hourly rate or at the contingency fee percentage, depending upon what you and your plan attorney decide.
• One on one consultations for each new legal matter. Thirty minute time limit per subject matter. Time over the 30 minutes per subject will be at the guaranteed low hourly rate.
• Registered Agent for your business in the state in which you are incorporated as well as other states where you do business.

*In certain situations, attorney liability may require plan attorneys to ask for a retainer from the member prior to providing some of the free legal services.

Guaranteed Low Hourly Rates*

Plan attorneys have contracted to charge no more than $125.00 per hour, or 40% off their usual and customary hourly rate, whichever is greater, for legal care that goes beyond the free and discounted services.

Retainers*

In the case of extended legal care, plan attorneys may ask you for a retainer. Any retainer sought will be computed by multiplying the number of hours a plan attorney believes a case will take, by the appropriate discounted hourly plan rate. For instance, 10 hours x $125.00 = a retainer of $1,250. Any unused portion of the retainer will be returned to the member.

*Court costs, filing fees and time charged for travel to and from any courts are additional.

Contingency Fee Discounts*

Attorneys often work on a contingency fee basis on such cases as personal injury and collections. This fee is usually expressed as a percentage of the amount collected or awarded. In collection matters, your attorney will accept 18% if the case is settled before formal court proceedings begin. After proceedings begin, the fee is 27%. On all other contingency matters there is a 10% discount on the lower of either the state maximum or the attorney’s standard rate.

*Court costs, filing fees and time charged for travel to and from any courts are additional.