Intellectual Property Insurance / Patent Insurance

Intellectual Property Insurance (IP Insurance), including patent insurance, is a highly complex class of specialty insurance products designed to protect insureds from the high cost of protection and enforcement of intellectual property rights.  Some IP insurance coverage may be found in other policies, such as professional liability policies, but coverage is limited.

Intellectual Property

Intellectual property (IP) comes in many forms, including patents, trademarks and copyrights.  Other forms of intellectual property include IP that is not legally protected and therefore must be protected by aggressive security arrangements and legal contracts.  An example is a secret formula. 

Litigation over infringement and misappropriation of IP is frequent and costly.  Often companies are not aware that content or a product is infringing on someone else’s IP.  In addition, it is difficult for small companies to enforce intellectual property rights against larger and better funded organizations.  On top of this are companies that specialize in buying other peoples IP and then forcing royalty and licensing agreements on other organizations who may be infringing.

IP Insurance

Insurance is available for various types of IP infringement actions.  There are two basic types of IP insurance (although the market is very complex and there are many variations):

  • Protection Coverage – protection from the costs of litigation from infringement of another’s property rights
  • Enforcement Coverage – coverage for legal and other expenses for enforcement actions against an entity infringing on your property rights

Because of the complexity and costs of IP litigation, the underwriting process for IP insurance can be difficult, requiring significant detailed information for the underwriter to review.  The cost of the insurance can be expensive depending on the type of IP and the underwriter’s assessment of the risk.  Therefore the terms and costs of IP insurance can vary greatly.  This coverage is primarily focused on US exposures, but international protection may be available for certain IP protection situations.

There are more limited forms of IP insurance found in various insurance policies, primarily professional liability (E&O) policies.  The coverage in these types of policies might include protection from actions alleging libel, slander, unfair competition or misappropriation of IP.  This coverage is limited, should not be confused with the more robust IP insurance noted above, and should not be relied on for companies with highly valuable or innovative IP.

Tennant Risk Services provides a wide range of markets for all types of specialty, unique and hard to place accounts.  Our goal is to provide the best combination of product, price and service to you.  We will handle your accounts knowledgeably and efficiently, in turn saving you valuable time and money.  Please let us know if we can be helpful in any way.

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Tennant Risk Services
124 LaSalle Road
West Hartford, CT 06107
Phone: (860) 519-1301
Fax: (860) 216-5845

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