Frequently Asked Questions
What is the importance of Intellectual Property Coverage in today's business market?
Intellectual Property (IP) Coverage plays a pivotal role in today's business market, primarily due to the escalating costs of litigation surrounding intellectual property. With the business landscape becoming increasingly competitive, the likelihood of encountering IP litigation is high. Without adequate IP coverage, companies, especially those in the technology market, could face significant financial threats, potentially leading to bankruptcy or dissolution. Commercial General Liability (CGL) insurance, while covering major issues like personal injury and property damage, does not extend to lawsuits regarding intellectual property. Therefore, many companies opt for specific insurance coverage for such matters. There are two types of IP rights insurance coverage: Defense and Enforcement or Pursuit. Defense coverage supports companies sued for IP rights infringement, while Enforcement or Pursuit coverage assists companies intending to sue competitors for IP theft. These insurance policies are particularly beneficial for smaller companies competing with larger, more financially robust companies. Smaller companies often rely heavily on their valuable IP for success, making it crucial to protect it. IP rights insurance policies make defending your IP affordable, ensuring that companies can enforce their protection even in the face of costly litigation.
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