Intellectual Property
Companies purchase insurance to protect their vital assets such as buildings and inventory but what about a company’s most vital asset, their intellectual property (IP)? That is, the right to sell their product in the marketplace. IP (patent) litigation is very expensive. In litigation where over $1 million is in dispute, the average legal expense alone is $3.1 million. Over the years 1995-1998 the median damages awarded by juries was $3.1 million.
The following types of insurance are available:
- Defense coverage: Pays defense, settlement and judgment costs.
- Abatement coverage: Provides the capital to pursue those who infringe on a company’s intellectual property.
- First party coverage: Provides for lost income due to licensing agreements and “design around” costs.
- Specific coverage for IP representation and warranties assumed through contracts.
For more information about these programs, Contact Us.
