Patent and IP Infringement Insurance, What’s Covered?
Your company invested time, money and sweat equity into your trademarks, patents and copyright materials. Increasing competition means an increase in the likelihood that your intellectual property (IP) could be infringed upon, possibly causing a significant loss in profits. It also means that there are increased odds that you could be served with a suit alleging that you infringed upon someone else’s intellectual property (IP), resulting in overwhelming litigation expenses. Intellectual property and patents infringement insurance includes defence coverage and can also include intellectual property rights abatement enforcement coverage, protecting you from having to worry about the legal fees of IP and patents infringement.
The following are coverages that can be included in a patent and intellectual property infringement insurance policy brokered by ALIGNED:
IP and Patent Infringement Liability
Protects you from defence of patent infringement claims and all other litigation claims of intellectual property infringement against you by covering your legal costs, awards for damages, settlements and counterclaims.
Contractual Indemnities Cover
Which allows you to meet contractual indemnity obligations required by your clients.
Additional coverages that can be added to your Patent and IP Infringement insurance
Pursuit of Infringers
This type of insurance coverage protects the investment of time, money and effort you’ve put into developing your own intellectual property assets and trade secrets by covering the legal costs to enforce your IP rights and claims should someone infringe upon them and cause you a loss.
Loss of Profit Cover
If you lose your IP and patent infringement lawsuits and injunctions are made against you to stop selling certain products or services, Loss of Profit coverage can cover your lost profits for up to 12 months. This is a valuable form of coverage for small- and medium-sized businesses who have a limited number of product lines/IP.
Loss of IP Right Coverage
This type of intellectual property insurance coverage can repay you for the investment you made in intellectual property that you lose the right to in the litigation process. With the large investments made in intellectual property, Loss of IP Right coverage is crucial in helping businesses continue moving forward despite losing their high-stakes investments in IP they no longer have a right to.
How Do I Get Patent and IP Infringement Insurance?
Streamlined Insurance Application Process
Patent and intellectual property infringement insurance is notorious for being a long, drawn-out underwriting process. Our dedicated team can often get your application processed, terms negotiated and have your patent insurance policy quoted and bound within days, not weeks, of receiving the needed information.
Who is Typically Covered by the Patent and IP Infringement Insurance Policies Brokered by ALIGNED?
Our policies are customizable and are best suited for startups and businesses that earn less than $425M and are typically in the following fields:
- Business software
- Construction companies including machinery and tool companies
- General manufacturing, e.g. components made for industrial products and machinery
- Mining and metals
- Oil and gas
- Professionals such as engineers and architects
- Renewable energy companies
We may also broker patent and intellectual property infringement insurance to companies who take in between $425M and $850M and/or who work in the following fields:
- Augmented and virtual reality
- Drug research and development (pre-commercialization)
- Food Processing
- Machine learning
- Manufacturing of low volume consumer products
- Medical equipment
- Technology Company, such as Software and computer game development
The Intellectual Property and Patent Infringement insurance policies available are not generally meant for companies that earn over $1.7B in annual revenue, have substantial claims histories or are involved in the following industries:
- Consumer electronics
- Certain computer hardware companies
- Certain software developers such as anti-virus
- Large medical device manufacturers and pharmaceutical companies
- Business involved with semi-conductors
Information You Will Need to Apply for Patent and IP Infringement Insurance
The following is some of the information you’ll need to have on hand when applying for patent and intellectual property infringement insurance:
- Name, addresses and contact information for your principal company and all subsidiaries you wish to cover (you need to include the information for your subsidiary companies in all the application form questions)
- The date your company was established
- The nature of your business
- Revenue for the last completed financial year and an estimate for the current year including a geographic breakdown of where your revenue comes from
- Owner of the company
- Total number of employees
- Top 5 income-generating products
- What makes your invention products or services unique
- Confidentiality and licensing agreements; product recall and risk management plans
- Information on the IP or invention you wish to have protected including contracts that govern them
- Intellectual property litigation cases and loss history
Don’t take chances with your Patent and IP Infringement insurance – Speak with an ALIGNED Advocate
Patent and IP infringement is too important to be left to chance. ALIGNED advocates are commercial insurance specialists who do all the legwork to make sure that our clients get exactly the coverage they need at competitive rates. Contact us to discuss your company’s patent and IP infringement insurance coverage needs.