What is IP insurance?
IP insurance helps protect your business against claims of IP infringement. It can also help you pursue anyone who infringes on your patent, design right, trademark or plant breeder's rights.
IP insurance provides protection for legal costs when you:
- Enforce IP infringement claims – including damages from loss of profits, reputation or settlements
- Defend IP infringement claims – covers you from claims against you, your customers or licensees. An infringement claim often refers to a violation of a copyright or some other type of IP theft.
What are the conditions?
Insurers decide what IP infringement the insurance will cover. They'll also choose what amount to pay for legal expenses when someone infringes on your IP right. This means your insurer:
- Needs to believe your case has a good chance of success before they agree to pay for legal action. This is especially true for enforcement claims
- Can refuse to cover costs if you don't accept reasonable negotiated settlement offers
- Won't cover unlimited legal expenses. The IP insurance policy you choose determines the level of cover.
What should I look for in a policy?
Each IP insurance policy is different. It’s important to understand policy terms and conditions to choose the right one.
To ensure your IP is fully protected:
- Your insurance policy must be current at the time of the claim
- The amount of cover needs to meet your possible legal costs
- An IP insurance broker can help you select the IP insurance policy to suit your specific needs.