Covered Loss Limitations Sample Clauses

Covered Loss Limitations a. BSI will reimburse up to $20,000,000 to all BSI Customers for Aggregate Covered Losses incurred in each fiscal year (December 1 through November 30). To calculate the amount of reimbursement, all claims against BSI (including all claims for all Covered Losses for all BSI products and services) by all of its customers made through the fiscal year will be aggregated ("Aggregate Covered Losses"). For purposes of aggregating, the date a claim is "made" will be considered to be the date BSI first receives notice of a claim from any BSI customer for the applicable alleged breach of duty, error or omission. If the Aggregate Covered Losses exceed $20,000,000 in any fiscal year, all such losses shall be prorated based upon the proven amount of all losses among the BSI customers affected. b. A Covered Loss does not include punitive damages. It does not include any loss incurred if the Covered Deficiency could have been corrected but Bank failed to correct the Covered Deficiency after discovering the deficiency or after receiving written notice from BSI of the existence of the Covered Deficiency and an explanation of the means to correct it. In the event a cure or correction is necessary, a Covered Loss includes Bank's actual necessary first-class postage expenses. It does not include attorney's fees or administrative expenses Bank incurs in completing any cure or correction. c. In order for a claim to be a Covered Loss, Bank must notify an officer of 851 in writing within thirty (30) days of the date when Bank becomes aware of an event likely to lead to legal action, or an event which is likely to lead to imposition of a fine or penalty. Covered Losses are limited to those incurred or assessed after such written notice has been given and BSI has had the opportunity to investigate and to participate in the defense thereof, which participation may be waived by BSI, at its sole option.