Frequently Asked Questions

What are the potential consequences for a company without Intellectual Property Coverage?

The potential consequences for a company without Intellectual Property (IP) Coverage can be severe and financially devastating. In the current business climate, litigation surrounding intellectual property is not only increasingly common but also expensive. Companies without IP coverage face significant financial threats if they have to go to court over IP issues. The costs associated with an IP case can be so high that a company could end up dissolving, particularly in the technology market where IP disputes are frequent. Without IP coverage, a company is exposed to the risk of bankruptcy in the event of a lawsuit. The modern marketplace is highly competitive, and this competition often extends into the courtroom. Therefore, being well-prepared for IP legal issues is crucial for a company's survival. Commercial General Liability (CGL) insurance, a standard policy that covers issues like personal injury and property damage, does not cover lawsuits regarding intellectual property. Therefore, many companies opt for insurance coverage specifically designed for IP matters. This insurance can help protect and support a company if they are sued for IP rights infringement or if they want to sue competitors for stealing their IP.