Frequently Asked Questions

How does intellectual property insurance provide coverage for patent-related lawsuits?

Intellectual property insurance provides coverage for patent-related lawsuits by offering protection against claims of patent infringement. This type of insurance is particularly beneficial for startup businesses that may find the realm of intellectual property challenging to navigate, especially with the presence of patent trolls and the complexities of law reforms and content syndication. Intellectual property insurance can be either offensive or defensive. Defensive policies protect the company when it needs to defend itself against a claim of patent infringement. On the other hand, offensive policies, also known as pursuit and abatement policies, cover the costs if a company has to pursue another entity for infringing on its patent. While the cost of intellectual property and patent insurance can be high, with policy costs ranging from $50,000 for limits as high as $1 million, the benefits often outweigh the risks. The long underwriting procedures can be time-consuming, but more carriers are entering the market, which is leading to a decrease in pricing and underwriting.