Intellectual Property Infringement Insurance

In Plain Terms

Intellectual property (IP) insurance helps your business defend itself against claims of IP infringement and can help you pursue those who are infringing on your intellectual properties, such patent, copyright or trademark. It protects businesses from the high financial costs of legal disputes, lawsuits, and settlements involving patents, trademarks, copyrights, and even trade secrets.

01
Defend

Answer a claim that you infringed someone else’s IP.
02
Enforce

Pursue parties using your patented or copyrighted work.
03
Protect

Stand behind contractual warranties you have given.
04
Recover

Offset lost profit, or the lost investment in the right itself.

Key Coverages

Defence costs and settlements: Pays for legal fees, court expenses, damages, settlements and counterclaims if a third party (such as your competitor) accuses your business of infringing on their IP rights.
Enforcement / abatement: Covers the legal expenses needed to pursue competitors or third parties who are illegally using your patented or copyrighted work.
Contractual indemnity: Protects you or your supply chain partners if a client demands compensation under a B2B contract warranty.
Loss of profit cover: If agreed by insurers, this provides cover to a business in the event that it loses an infringement case and that results in an injunction against the business, this coverage can cover for the resulting loss of profits for up to 12 months.
Loss of IP right cover: IP rights can be invalidated as a consequence of infringement action. If this happens, this coverage can repay the investment in the IP, allowing the business to reduce its financial loss.

Who Needs It

Patent And IP Owners

The enforcement coverage can help the business to affordably sue other parties copying its work.
Manufacturers And Product Designers

Businesses launching physical products need protection if a rival claims a design or mechanical patent was copied.
Content Creators And Media Companies

Publishers, marketing agencies, film makers, and artists face frequent copyright and trademark challenges regarding published media or advertising.
Businesses Signing Indemnity Agreements

Firms that must sign strict indemnity agreements or contractual warranties promising clients they do not infringe on third-party IP.
E-commerce and Retail Brands

Companies with unique brand names, logos, or proprietary product lines require protection against trademark disputes.

Insurers' Appetite By Industry

Insurers apply an appetite to IP risk by sector. If your industry sits outside the preferred list, it is still worth a conversation.

Construction, including tools and machinery
General manufacturing, including components for non-consumer products and machinery
Professional services — architects and engineers
Design
Oil and gas
Mining and metals
Business operation software
Consultants
Renewable energy
Automotive

Common Exclusions

Prior infringement: Those that started before the inception of the policy.
Deliberate actions: Intentional or wilful acts of infringement.
General business contracts: Standard contractual breaches or routine IP registration and maintenance costs.