Intellectual Property

Protect your creative assets with IP Litigation Insurance - robust defence and pursuit coverage against infringement claims.

Intellectual property (IP) has become one of the most valuable assets for businesses worldwide, from patents and trademarks to copyrights and trade secrets,representing the heart and soul of many modern enterprises. With this great value comes great risk. Intellectual Property Insurance serves as a protective shield for businesses, safeguarding their IP assets against potential threats and legal disputes.

Intellectual Property Insurance is designed to protect businesses against the costs associated with IP litigation. Whether you're defending your IP rights against infringement or facing allegations of infringing upon someone else's IP, this insurance can cover legal fees, damages, and other related expenses.

Intellectual property insurance is crucial for a wide range of businesses, including:

Tech Startups: Protect your innovative products, software, and patents.
Biotech and Pharmaceuticals: Secure your valuable research and patents.
Manufacturers: Ensure your proprietary processes and trade secrets are protected.
Creative Agencies: Safeguard your unique designs, logos, and creative work.
Any IP-Reliant Business: If your business depends on intellectual property, this coverage is essential.

Common Coverage Components of Intellectual Property Insurance

Infringement Defence: IP infringement can occur when someone uses, copies, or exploits intellectual property without permission from the owner. In some cases, allegations of infringement may be groundless or strategic in nature, aimed at protecting a market position. While IP insurance cannot eliminate the risk of being accused entirely, it covers the costs of defending against such allegations, out-of-court settlements, or damages. This coverage also extends to claims of entitlement by employees and certain aspects of contract breach related to intellectual property.

Invalidation Challenges: Registering intellectual property to protect your innovations and creative endeavours involves significant expenses, including registration fees and professional advice costs. Invalidation challenges, where third parties contest the validity of an IP right, can be costly to resolve without insurance coverage. IP insurance includes coverage for legal expenses incurred while addressing IP invalidation challenges.

Trademark Oppositions: When a company applies to register a trademark, it's impossible to predict whether the application might be contested by other businesses. With millions of trademarks in use globally, disagreements over trademark applications can lead to substantial legal costs. IP insurance provides coverage for resolving trademark oppositions, easing the financial burden on your business.

Patent Title Dispute: Creating intellectual property often involves collaboration, which can lead to disputes over ownership. IP insurance steps in to cover legal expenses incurred when resolving disputes arising from challenges to the insured's ownership of their intellectual property, whether from third parties or joint partners.

Infringement Pursuit: IP rights protect the core assets of every business, but infringement can still occur. It's the responsibility of IP owners to defend their rights and pursue infringing parties. IP infringement litigation can be costly, making it difficult for many businesses to take legal action. Pursuit coverage includes legal cost coverage for enforcing IP rights against third-party infringers.

Breach of Contract Pursuit: Contracts are integral to business operations, and sometimes contract parties breach terms that result in IP infringement. Pursuing legal action to rectify damages can be complex and expensive. IP policies can cover legal expenses when seeking remedies for infringements arising from contract breaches.

Loss of an IP Right: If an IP right is revoked or invalidated due to infringement, it can have a substantial impact on a business. IP policies may extend to reimbursement for fees related to registering and maintaining IP rights.

Loss of Future Profit: The inability to utilise an IP right can lead to significant losses in future profits, hampering a company's growth IP policies include coverage for lost future income resulting from a business's inability to use its IP rights.

Why Choose Intellectual Property Insurance?

Protect What's Unique: Safeguard your patents, trademarks, copyrights, and other IP assets that make your business competitive and successful.
Defend Against Claims: Be prepared to defend against baseless infringement allegations and other IP-related challenges without draining your financial resources.
Support Innovation: Encourage innovation and creativity within your business by knowing your intellectual property is protected.
Business Continuity: Ensure your business's continuity even in the face of IP-related disruptions and legal challenges.

Intellectual Property Insurance is more than a policy; it's your strategic partner in preserving and defending your intellectual capital. To explore tailored solutions that align with your IP protection needs, contact Intuitive today. We specialise in helping businesses thrive in today's dynamic and competitive environment by safeguarding their intellectual property.

Why choose Intuitive Insurance Solutions for your IP Litigation protection?

Expert Advice

We work for you, not the insurer. Our expert team are dedicated to tailoring insurance programs to your unique needs and negotiating the best possible outcomes on your behalf.

Transparency

We firmly believe in full transparency when it comes to remuneration. We understand that trust is built on open and honest communication. That's why we are committed to providing visibility in all aspects of compensation. With us, you'll always know where you stand, ensuring a relationship founded on trust and fairness.

Market Access

With access to policies from more than 150 national and international insurers, you can feel confident we can deliver the cover you need.

Claims Advocacy

We take care of the process, helping you achieve the best possible outcome by working closely with you and the insurance company throughout. We keep you informed every step of the way.

Insurance is what we do, but what do we do for you?

Understanding our clients and their needs is critical to our success. By taking the time to understand your business and objectives we can save you time, money and provide greater certainty on what your insurance program covers. We aim to make your life easier by delivering truly intuitive insurance solutions.

What is a claims-made policy and how does it differ from an occurrence-based policy?

A claims-made policy covers claims that are made (or reported) to the insurer during the policy period or an extended reporting period. The key factor is when the claim is reported, not when the incident occurred. On the other hand, an occurrence-based policy covers claims that arise from incidents or events that occur during the policy period, regardless of when the claim is reported. The key factor in this case is when the incident took place and not when it is reported.
What is a retroactive date?

A retroactive date is applied to claims-made policies and defines how far back in time a breach of professional duty can occur for your policy to respond. As an example, consider that a professional purchases a PI policy on January 1, 2023, and a retroactive date of Inception is applied (i.e., January 1, 2023). This means that the insurance policy will cover claims or legal actions arising out of professional services provided on or after January 1, 2023.
What is meant by costs inclusive versus costs exclusive (limit/excess)

Where a limit of liability is described as costs inclusive, this means the limit afforded includes both the indemnity (the compensation amount paid to a claimant) as well as the costs and expenses incurred in defending the claim. Conversely, a costs exclusive limit of liability applies to the amount paid to the injured party only (indemnification), and costs and expenses are paid in addition by the insurance company (often capped). A “costs inclusive excess” (or deductible) means that the excess amount applies to the total costs associated with a claim, including legal expenses, damages, and other related costs. In this case, the policyholder is responsible for covering these costs up to the excess amount, and the insurance company will start paying once the costs exceed the excess. Under a “costs exclusive excess”, the deductible or excess amount only applies to the indemnity portion of a claim. Legal defence costs are typically covered separately, and the policyholder doesn't need to pay the excess for these costs. Instead, they are covered by the insurance company from the outset.
What is contractual liability and why is it important?

Contractual liability in professional indemnity insurance refers to the responsibility that professionals might take on through contracts with their clients. This includes how this liability is covered in a professional indemnity insurance policy. Professionals often sign contracts with their clients when they provide services. These contracts spell out the professional's duties, the work's scope, deadlines, and even clauses about protection. When professionals buy professional indemnity insurance, it can cover them for contractual liabilities, as long as these liabilities come from events listed in the insurance policy. This coverage can be broad or limited to professional mistakes or negligence. It's crucial to understand the terms and conditions of your insurance policy. Some policies might not cover certain types of contract-related liabilities. If a client or someone else sues the professional, claiming a contract breach or professional error, the professional indemnity insurance policy comes into play. The insurance company will typically investigate the claim and, if it's valid, provide coverage for legal expenses. If necessary, it can also cover any settlements or damages awarded.
What are territorial and jurisdictional limits and how are they different?

Territorial limits define the geographical area or region where the insurance policy provides coverage for work performed. This means the insurance policy specifies the locations or countries within or from which services can be supplied. Jurisdictional limits relate to geographical area or regions the policy will respond to claims brought within the court system. This means the insurance policy specifies the locations or countries within which legal action can be heard. In summary, territorial and jurisdictional limits relate to the physical locations or regions where the insurance coverage is valid, and you should ensure these extend to all locations where you carry out work or clients are based.
What is the difference between a limit reinstatement and aggregate limit:

On face value, a limit of indemnity with 1 reinstatement and a limit of indemnity with an aggregate of double the limit may seem the same, but they work differently. Reinstatement: If you have a policy with a reinstatement, the insurer restores the full limit of indemnity after a claim, even if it's partially used. The limit will only be reinstated the number of times specified on the policy. Aggregate Limit: With an aggregate limit, your coverage is reduced by the actual claims made. It provides unlimited reinstatements it is fully exhausted, providing more certainty of the level of coverage afforded.
Can an additional insured be added to the policy?

In many cases, it is necessary to include an additional insured on your insurance policy, thereby extending liability coverage to this party. Such requests frequently originate from parties with a vested interest in your operations, including contract manufacturers, subcontractors, vendors, and other partners within your supply chain. This practice is common in business relationships where one party seeks protection from the potential liabilities of the other party.
What are the implications for adding an additional insured party?

Adding an additional insured party to an insurance policy carries certain implications that are important to understand. An additional insured typically enjoys similar rights and responsibilities as the primary policyholder. This means that they can often file a claim directly against the policy and have access to the policy's coverage limit. However, it's crucial to note that if a claim is made against both the primary insured and an additional insured, it can deplete the liability limit more rapidly, potentially leaving the primary policyholder with insufficient protection.

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