Frequently Asked Questions

What factors should a business consider when deciding on their Intellectual Property Insurance coverage?

When deciding on their Intellectual Property (IP) Insurance coverage, businesses should consider several factors. Firstly, they should assess the potential financial threats they could face if they had to go to court over IP. Litigation surrounding IP is becoming increasingly expensive, and without adequate coverage, a company could face dissolution due to the costs of an IP case. This is particularly relevant in the technology market where IP litigation is quite common. Secondly, businesses should consider the type of IP insurance coverage they need. There are two types: Defense and Enforcement or Pursuit. Defense coverage protects a company if they are sued for IP rights infringement, while Enforcement or Pursuit coverage assists companies that want to sue competitors for stealing their IP. The choice between these two depends on the company's specific needs and circumstances. Thirdly, businesses should consider the value of their IP. If a company has many trade secrets, copyrights, patents, or other valuable IP to protect, they might decide to take out an enforcement policy type. Smaller companies with fewer assets may rely on their valuable IP for their success, making it crucial for them to protect it.