Protecting your company against Intellectual Property risks
What is IP insurance?
Intellectual Property (IP) insurance is a term used for insurance policies designed to cover risks specifically arising out of Intellectual Property. They can be first party, third party or both. Some of these covers are only available in combination with others.
IP insurance as a generic term is often intended to mean IP infringement liability insurance, which is a key requirement for many companies seeking IP insurance solutions. It is also common for companies to seek this coverage specifically for contractual warranties and indemnities that may be required in relationships with B2B customers.
IP Infringement Liability: can cover the risk that a company is alleged to infringe someone else’s IP by for example using, making, importing or selling an item. This does not have to be a formal lawsuit but can be any allegation in writing, and cover can include legal costs as well as damages or settlement awards.
IP-Related Contractual Obligations: can cover claims arising out of a contractual warranty or obligation to defend and indemnify another contract party for an IP claim arising due to something delivered in that contract. This is a common reason to purchase IP insurance and can arise out of a number of different types of contract, for example in sales, licensing or collaboration between commercial entities. A merger or acquisition is a specific type of contract where an IP insurance could also be required, either instead of or in addition to a traditional M&A insurance policy. Gallagher’s IP and M&A teams can collaborate to ensure that the most comprehensive solution is offered.
IP-Related Contractual Disputes: could provide cover for both the defence and enforcement of allegations of IP related contract breach of for example a license agreement.
Enforcement of IP Rights against infringers: also known as “pursuit”, could provide the financial muscle to go after a party that is infringing on a company’s own IP rights by covering the legal costs of such action. This cover is typically available for smaller businesses and many insurers have a restricted appetite.
We typically work with businesses domiciled or with main activities in:
- New Zealand
- United Kingdom
- United States
We typically work with clients with an annual turnover in excess of £50 million but we can also work with smaller companies with an established IP management process, or if the risk or placement is complex due to contract requirements and larger limits.
Intellectual Property Insurance
- IP infringement liability cover
- Cover for IP-related contractual obligations
- Cover for IP-related contractual disputes
- Cover for enforcement of IP rights against infringers