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; or (c) investigating, avoiding, reducing or settling any 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 internal or overhead expenses of the Practitioner or the cost of any Insured's time.