Common use of Risk Mitigation Clause in Contracts

Risk Mitigation. A. The Insurer will reduce the Insured Entity's retention for a Claim by 50%, up to $10,000, whichever is less, if the Insured Entity, involved in such Claim, demonstrates, to the Insurer’s reasonable satisfaction, the existence of the following four (4) conditions: 1. proof of legal review and sign-off of in-force employment practices policies and procedures for harassment, discrimination and employee grievance by outside counsel who specializes in employment practices law; 2. proof of distribution of employment practices policies and procedures on harassment, discrimination and employee grievance, to all employees; 3. proof that all directors, officers and managers of the Insured Entity have attended outside training and education programs on sexual harassment within the last 24 months prior to the filing of a Claim; and, 4. a copy of the Insured Entity's written policy on email or other electronic communications. B. In the event that one Claim is eligible for both this Risk Mitigation Credit Section and the Mediation provision found in the General Terms and Conditions, Section XXI. DEFENSE/SETTLEMENT/MEDIATION/PRE-CLAIM ASSISTANCE Paragraph B.2 Mediation, then the Insured Entity shall receive only the benefit of one retention credit, but not both. In no way shall either section be construed to afford any more than a total of 50% or $10,000 credit toward any one retention for any one Claim.