Frequently Asked Questions
What are the limitations of IP and patent insurance policies for new companies?
Intellectual Property (IP) and patent insurance policies are crucial for new companies, providing protection against patent infringement lawsuits and other patent-related issues. However, these policies come with certain limitations that can pose challenges for startups. One of the primary limitations is the high cost of these policies. The policy costs can range from $50,000 for limits as high as $1 million, which can be a significant financial burden for new companies. This high cost can deter some startups from investing in these policies, despite the potential benefits they offer. Another limitation is the lengthy underwriting procedures associated with these policies. These procedures can consume a lot of time, which can be a significant constraint for new companies that are already grappling with various other challenges. Moreover, while more carriers are entering the market, leading to a decrease in pricing and underwriting, these insurance policies can still be difficult for new companies to obtain due to time and money flow limitations.
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