Intellectual Property Insurance
Intangible asset risk can be transferred. KMRD can help.
Better CoverageWe take the time to thoroughly review your policies and deliver the right risk and insurance coverage for all your needs.
Better AccessWe provide a secure and collaborative environment offering 24/7 access for everyone on your team around the globe.
Better ControlWe perform a disciplined review across your entire operation to understand all of your company’s exposures.
Better DeliveryWe take the time to get to know your company and then assign a team that cares about getting it right.
Developing intellectual property often requires considerable investments of time and money. Since organizations depend on it for branding, manufacturing and selling their unique products and/or services, it is vital they protect their intellectual property.
Registering intellectual property, however, does not protect organizations from lawsuits. Since the legal and civil codes governing are often complex and convoluted, they easily become long running and expensive. These lawsuits can easily cost hundreds of thousands of dollars, which is why lacking IP insurance can financially jeopardize an organization. Therefore, having IP coverage is more cost effective than incurring the sometimes millions of dollars in legal costs necessary to protect intellectual property.
Some Alarming Statistics
- The median inclusive litigation costs for a patent infringement suit range between $700,000 to $5.5 million, depending on how much money is at risk, according to the 2013 cost study conducted by the Intellectual Property Law Association.
- The total number of patent cases rose nearly 300 percent from 1990-2010, according to PatentlyO.
- The number of named defendants increased 600 percent from 1990-2010, also according to PatentlyO.
- About 60 percent of an organization’s assets are tangible, which includes intellectual property, according to an article published in Insurance Journal.
An Intellectual Property policy pays the legal and judgment costs, up to policy limits, to defend an organization if another entity tries to claim infringement of:
- business models
- trade secrets
Types of Coverage
- Defense Coverage: Designed to provide legal defense funds for IP infringement regardless of a lawsuit’s legitimacy, a Defense policy can also discourage frivolous infringement lawsuits when the plaintiff learns this type of coverage backs the defendant. Besides covering invalid counter claims, there is also an option to protect business processes. Defense coverage also provides automatic protection from surprise lawsuits. And since there is a large expense threshold, customers can be assured that they will receive the best representation available.
- Abatement Coverage: The Abatement policy, also known as a Pursuit policy, reimburses litigation expenses to enforce intellectual property against alleged infringers.
- Other Coverage: The marketplace also offers coverage for Business Interruption, Loss of Commercial Advantage and Redesign, Remediation and Reparation.
KMRD designs and negotiates state of the art intellectual property insurance programs with the help and litigation experience of an IP attorney. The value is better, more predictable coverage at a lower cost of risk.
We’d love to help you evaluate whether an intellectual property insurance program may be beneficial to you. Call us at 866-957-KMRD (5673) or send us an email via the contact form below.
For a consultation regarding intellectual property insurance, please fill out the form below: