IP Defense Insurance

Protecting Ingenuity

Intellectual Property (IP) Infringement Defense Reimbursement Insurance provides the funds to fight the legal battle when you are accused of IP infringement. The policy can also provide funds to pay assessed damages or settlements. It protects any company that makes, uses, and/or sells a product, or uses a word or mark in the marketplace.

IP Defense Insurance provides several benefits:

  • It enables you to mitigate the risk of unexpected infringement litigation.
  • It provides the funds and expertise for a powerful defense, increasing the likelihood of a favorable decision.
  • It relieves the pressure to settle a winning suit because of lack of financial resources.
  • It will discourage frivolous infringement suits and prevent loss of market share by demonstrating your ability to financially protect your business practices.
  • It will increase the attractiveness of your technology and decrease the risk to potential investors.
  • It includes Litigation Management services.

IP Defense insurance also puts in place the funding mechanism to cover the standard indemnification clause for IP infringement in many contracts. If you’ve been required to indemnify a client against this risk, the coverage will enable you to live up to the requirement and negotiate the value of that assumed risk.

Defense insurance protects your substantial investment in the products you offer and the revenues they produce. The included services reduce the impact of litigation and enable your operations to continue uninterrupted.

The Defense policy covers a particular, scheduled product or products. Prior to quoting coverage, the carrier must understand the patent landscape surrounding the technology and the product specifications to be covered. This information can be provided in a Freedom to Operate opinion – which would limit the scope of coverage to the IP opined upon. In lieu of the opinion, we can perform an Insurability Review. The fee for this service is generally $2000 per function or process, an average of $5000 per applicant. Annual premiums for the Defense policy are based on the size/number of products insured and their relative risk. One product/function, of average risk at $1 million in limits, is approximately $12,000 – $16,000, depending on inclusion of damages in the coverage.

This Claims-Made and Reported policy is restricted by a Self-Insured Retention, Co-Insurance provision and a 90-Day Exclusionary period. Pre-existing threats of infringement and willful infringement are excluded, among other limitations. Please review the policy specimen and consult with your professional advisor for all of the details.


For more information, please contact:

PremierSource Risk Managment

405.228.7699 OKC  |  918.574.3030 TULSA  |  866.239.4015 TOLL FREE