Network Security Liability Clause Samples
The Network Security Liability clause defines the responsibilities and potential liabilities of parties regarding breaches or failures in network security. It typically outlines which party is accountable for damages resulting from unauthorized access, data breaches, or cyberattacks affecting shared or connected systems. For example, it may require a service provider to implement specific security measures and notify the client promptly in the event of a security incident. This clause serves to allocate risk and clarify obligations, ensuring that both parties understand their roles in maintaining network security and the consequences of failing to do so.
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Network Security Liability. Liability to a third party as a result of a failure of your network security to protect against destruction, deletion, or corruption of a third party’s electronic data, denial of service attacks against internet sites or computers; or transmission of viruses to third party computers and systems.
Network Security Liability. The Insurer will pay, to or on behalf of the Insureds, Loss in the form of Damages and Defense Costs arising from Claims first made against the Insureds during the Policy Period or the Discovery Period (if purchased) for Wrongful Acts which:
(1) are committed or allegedly committed after the Retroactive Date, and
(2) result in a Security Failure.
Network Security Liability any Claim for Network Damage first made against the Insured during the Policy Period, or any Extended Reporting Period, if applicable, alleging any Wrongful Act by the Insured Entity, by an Insured Person within the scope of such individual’s duties on behalf of the Insured Entity or by someone (including a Rogue Employee) for whose Wrongful Act the Insured is legally responsible;
Network Security Liability. We will indemnify you for the following:
a. Any sum of money for which you are legally liable, arising from a third-party claim for a cyber incident on your personal devices that you failed to prevent, and which has caused damage, alteration, destruction or theft of data or a Denial of Service (DoS) attack on third parties’ computer systems.
b. Any legal costs incurred by you resulting from the third-party claim covered under this coverage section.