Intellectual Property Insurance covers companies for the legal costs associated with pursuing infringement or theft of IP. It also covers legal defense costs for policyholders accused of IP infringement or theft. Infringement defense is the most popular type of IP insurance. It covers policyholders for infringement claims brought against them.Abatement enforcement coverage gives IP owners the financial resources to enforce their IP rights and pursue infringement claims.
Other risks associated with IP:
- Hiring employees from competitors or having employees move to competitors that may have trade secrets or client information.
- The IP terms and conditions in some development or commercial agreements with 3rd parties.
- The publishing activities of the business.
- The use of subcontractors.
The cost of Intellectual Property litigation is often very expensive. It continues to increase annually and in some cases, the cost of this litigation can put a company out of business. Claims in this arena generally run in the six-figure range and in the seven-figure range for larger organizations.
We took over the insurance program for a company after they paid out $250k for an alleged IP infringement. You need to know your exposures and then decide if you want to transfer the risk by purchasing insurance or completely avoiding the situation. Geoff Johansing and his team believe it is their duty to educate their clients and let them make the decision once they understand the risks. If you would like to schedule an assessment, use the link below to schedule a meeting with Geoff and his team.