Frequently Asked Questions

What are some commonly excluded items in IP rights insurance policies?

Intellectual Property (IP) rights insurance policies are crucial for businesses in today's competitive marketplace, especially for those with valuable IP such as trade secrets, copyrights, and patents. However, it's important to note that not all aspects of IP infringement litigation are covered by these policies. Some commonly excluded items in IP rights insurance policies include fines and penalties (punitive, treble, exemplary), IP infringement that the policyholder was aware of before taking out the insurance policy, and expenses and losses that are the consequence of willful IP infringement. Fines and penalties are often excluded because they are seen as punitive measures, meant to deter and punish the infringer, rather than compensatory costs. Similarly, if a policyholder was aware of an IP infringement before taking out the insurance policy, it is typically excluded from coverage. This is to prevent businesses from taking out policies to cover known risks. Lastly, expenses and losses resulting from willful IP infringement are also commonly excluded. This is because insurance policies are not designed to cover deliberate or intentional acts of infringement.