Common use of Network Security Liability Clause in Contracts

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.