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DATA BREACH COVERAGE - DEFENSE AND LIABILITY <br />4. You must preserve all evidence of the "data <br />breach". <br />E. EXCLUSIONS <br />This insurance does not apply to "loss": <br />1. In connection with any "data breach claim" <br />arising out of any criminal, fraudulent or <br />dishonest act, error or omission, or any <br />intentional or knowing violation of the law by <br />any insured. <br />2. For "bodily injury" or "property damage". <br />However, this exclusion will not apply to a <br />claim for mental injury, mental tension, mental <br />anguish, or emotional distress directly relating <br />to a "data breach". <br />3. In connection with expenses arising out of any <br />criminal investigations or proceedings or <br />arising out of governmental action for the <br />seizure or destruction of property by order of <br />governmental authority, or war and military <br />action including undeclared or civil war, <br />insurrection rebellion, revolution or action <br />taken by governmental authority in hindering <br />or defending against any of these. <br />4. In connection with any "suit" seeking only non - <br />monetary damages. <br />5. For any fines, penalties, or surcharges. <br />6. For any cost to correct a deficiency in your <br />systems, including but not limited to, data <br />security, data storage or physical security and <br />procedures. <br />7. In connection with a "data breach claim" <br />arising out of any shortcoming in a computer <br />system that you knew about prior to the <br />effective date of this Coverage Part. This <br />includes any failure to take steps to use, <br />design, maintain or upgrade a computer <br />system and the inability to use, or lack of <br />performance of software due to: <br />a. expiration, cancellation, or withdrawal of <br />such software; <br />b. it not being released from its <br />developmental state; or <br />c. it not having passed all test runs or proven <br />successful in applicable daily operations. <br />Form SS 00 48 03 16 <br />8. In connection with a "data breach" arising out <br />of the failure to apply or improper application <br />of necessary software patches. <br />9. In connection with a "data breach claim" <br />arising out of any action or omission that <br />violates or is alleged to violate: <br />a. The Telephone Consumer Protection Act <br />(TCPA), including any amendment of or <br />addition to such law; <br />b. The CAN-SPAM Act of 2003, including <br />any amendment of, or addition to such <br />law; or any statute, ordinance or <br />regulation, other than the TCPA, or CAN- <br />SPAM Act of 2003, that prohibits or limits <br />the sending, transmitting, communicating <br />or distribution of material or information. <br />10. In connection with a "data breach claim" arising <br />out of any discrimination of any kind, including <br />but not limited to race, creed, religion, age, <br />handicap, sex, marital status or financial <br />condition; refusal to employ, termination of <br />employment, coercion, demotion, evaluation, <br />reassignment, discipline, harassment, <br />humiliation, discrimination or any employment <br />related practices, policies, acts, errors or <br />omissions. <br />11. In connection with a "data breach claim" <br />arising out of any intentional or knowing <br />violation of the Insured's privacy policy. <br />12. In connection with a "data breach claim" <br />arising out of any actual or alleged <br />infringement or patent, trade secret, copyright, <br />service mark, trademark, trade name, or <br />misappropriation of ideas or any other <br />intellectual property right. <br />13. In connection with a "data breach claim" <br />arising out of any rendering or failure to render <br />any professional services for others, including <br />without limitation, services performed by the <br />Insured for or on behalf of a customer or client. <br />14. In connection with a "data breach claim" <br />arising out of any breach of any express, <br />implied, actual or constructive contract, <br />warranty, guarantee, or promise, including <br />liability of others assumed by you under any <br />contract or agreement or breach of contract, <br />unless such liability would have attached to <br />you in the absence of such an agreement. <br />ew cF RAMwagementDMsian <br />Jy/\'x REVIEWED & APPROVED BY.- <br />V"° <br />--� Risk janagement Analyst <br />