Is IP insurance right for my business?
There are now vast numbers of intellectual property (IP) rights in existence, which means infringement is a very real risk for companies of all sizes.
Smaller brands are not immune to the threat of an intellectual property case, in reality, they're far from it. Recent years have seen many small to medium sized companies targeted by multinational corporations for their use of intellectual property. For this reason, we always recommend that companies take out comprehensive IP insurance, to protect themselves from the threat of IP action and safeguard their own intellectual property.
What is IP insurance?
Intellectual property (IP) is a broad term used to describe the legal rights arising out of intangible creations and assets, like a product or process, a piece of software, a brand or even a customer database. IP insurance protects businesses from the financial implications of a range of different intellectual property exposures. For small to medium sized businesses, this is likely to be a claim of infringement by another company. But it can also be a direct threat to a company’s own intellectual property.
The benefits of IP insurance
Intellectual property insurance provides numerous benefits, which are perfect for growing companies that need complete protection from IP exposures. Take a look at some of the key reasons to take out IP insurance:
Patent and IP infringement
Companies unwittingly infringe on the intellectual property of their competitors more often than you might think. Brands therefore need to be covered for this exact situation.
Contractual indemnities cover
Another vital layer of protection which comes under IP, contractual indemnities cover allows smaller brands to agree and meet any contractual indemnities required by their customers.
Pursuit of infringers
Comprehensive IP insurance gives smaller companies the resources they need to protect their intellectual property and enforce their rights when needed.
Loss of profit cover
Any loss of profits can soon prove critical for a small business. If an infringement case is lost, IP insurance will cover any resulting loss of profits for 12 months.
Loss of IP right cover
IP insurance can repay investments in intellectual property, should that work be invalidated by infringement action. This enables brands to quickly move on to their next project.
Exceptional service level
It used to be difficult and time consuming to secure IP cover, but that’s no longer the case. Our team aims to quote and bind policies within three days.
Intellectual property insurance is essential for all companies. No matter which industry a business works in, and how many competitors it has, there’s always a chance of IP infringement action. And for startups and smaller companies, the effects of this can be particularly devastating.
Read more about IP insurance to learn how these policies secure intellectual property and protect businesses from the risk of IP action. For cover for start-ups and SMEs, check out our IPPE policy!
Get in touch at IP@cfc.com.