Common use of Defence Costs Clause in Contracts

Defence Costs. Defence costs are legal costs and disbursements and related expenses reasonably and necessarily incurred in - (a) defending any proceeding; (b) conducting any proceeding for indemnity, contribution or recovery; (c) investigating, reducing or settling any claim; or (d) taking steps to avoid a reported circumstance subsequently becoming a claim (or reducing any such subsequent claim), incurred by - (i) the Insured with the consent of the Insurer after reporting the claim or the circumstance to the Insurer; or (ii) the Insurer after it has assumed conduct of any such claim or proceeding. Defence costs do not include any - (A) internal or overhead expenses of the Practitioner or the cost of any Insured's time; (B) cost or expense to reinstate, restore or replace any of the Practitioner's electronic or computer systems; or (C) ▇▇▇▇▇▇ or extortion payment or any cost or expense incurred in relation to a ▇▇▇▇▇▇ or extortion demand.