Common use of Retentions Clause in Contracts

Retentions. 1. Solely with respect to coverage provided on a Combined Limits basis, the Insurer is liable only for that portion of covered damages, regulatory damages and claim expenses resulting from a third party wrongful act and for that portion of covered first party costs resulting from a first party incident that is in excess of the applicable Insuring Agreement’s retention amount, as stated in Item 7. on the Declarations page. If more than a single retention applies to a claim and/or first party incident, then the Insured is responsible for paying the highest applicable retention. The retention will be borne entirely by the Insured alone and not by the Insurer. 2. Solely with respect to coverage provided on a Separate Limits basis, the Insurer is liable only for that portion of covered damages, regulatory damages and claim expenses resulting from a third party wrongful act and for that portion of any covered loss of business income, extra expense, data recovery expenses, cyber-extortion expenses, data breach response and crisis management costs and claim avoidance costs resulting from a cyber security breach or cyber-extortion threat that is in excess of the applicable Insuring Agreement’s retention amount, as stated in Item 7. on the Declarations. If more than a single retention applies to a claim and/or first party incident, then the Insured is responsible for paying the highest applicable retention. The retention will be borne entirely by the Insured alone and not by the Insurer. As respects Data Breach Response and Crisis Management Coverage a separate retention will apply and the Insurer is liable only for that portion of any covered data breach response and crisis management costs directly resulting from a data breach.