Intellectual Property Liability Insurance

What is IP Infringement Liability Insurance?

Intellectual Property (IP) Infringement Liability Insurance is a type of insurance that provides coverage for legal expenses, settlements and damages resulting from claims of intellectual property infringement. This can include patent infringement, trademark infringement and copyright infringement. 

The insurance helps protect businesses from the financial risks associated with lawsuits and legal disputes over intellectual property rights. It can cover costs such as legal defense fees, settlements, and judgments. 

In today’s economy, where intangible assets are an increasingly large part of corporate balance sheets, companies of all sizes in all industries can benefit significantly from a broad IP insurance program. 

IP Infringement Liability Insurance Trends 

The IP insurance marketplace has transformed significantly over the past few years. Organizations can now secure IP infringement insurance with broader coverage, more capacity and lower premium compared to historical solutions.

Recent key buying trends for clients include: 

• Contractual indemnity obligations
• Decreased pricing as a result of increased competitive insurer marketplace
• Launching of new products and/or services
• Advancements and/or integration of AI
• Introduction of new coverage elements (IP business interruption, IP breach of contract)

Aon’s IP Infringement Liability Insurance Coverage 

Aon’s team of dedicated IP brokers combines extensive IP experience with advanced data and analytics. We help companies place an IP infringement liability insurance program which is designed to help provide balance sheet protection or a hedge against catastrophic IP losses. 

Our IP capabilities also support organizations to make data-driven decisions around protecting their IP risk exposures and securing appropriate insurance coverage. 

At a high level, the scope of insurance coverage can include: 

• Defense, damages, and settlements for allegations or threats of IP infringement of products or services
• All types of IP issues: patent, copyright, trademark, domain name, trade secret
• Defense, damages, and settlements contractual indemnities around IP
• Confidentiality related Breach of Contract issues
• IP-related Business Interruption
• Invalidity, rectification, cancellation, or revocation proceedings (where applicable) or applications to amend any register; or
• Loss mitigation (design around services)

Pre-negotiated Defensive IP Liability Insurance Policies 

Aon also offers pre-negotiated defensive IP liability insurance policies. These can offer*

• Coverage for certain litigation expenses, settlements, and damages
• Reimbursement of certain costs and expenses resulting from challenges against the insured’s IP rights
• Contractual indemnities provided to a third party
• IP rights around the validity, title and ownership of the insured’s IP assets
• Appeals and counterclaims
• Coverage for a business’s entire operations, or coverage limited to specific products, processes and services
  • Loss mitigation
  • Non-practicing entities (NPEs)
  • Competitors
  • Choice of counsel
• Coverage for patent enforcement and contract enforcement for certain companies

In addition, coverage agreements are also available for:

• Breach of contract coverage
• Business interruption
• Affirmative AI coverage

*All descriptions, summaries or highlights of coverage are for general informational purposes   and do not amend, alter or modify the actual terms or conditions of any insurance policy. Coverage is governed only by the terms and conditions of the relevant policy. 

Efficient Placement Process

Whatever the coverage selected, clients experience a streamlined placement process through Aon’s standardized approach to managing the data required by underwriters. Aon also helps clients assess litigation risks within their specific industry segment.

The information contained herein and the statements expressed are of a general nature and are not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information and use sources we consider reliable, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.

All descriptions, summaries or highlights of coverage are for general information purposes only and do not amend, alter or modify the actual terms or conditions of any insurance policy. Coverage is governed only by the terms and conditions of the relevant policy.

Insurance products and services offered by Aon Risk Insurance Services West, Inc., Aon Risk Services Central, Inc., Aon Risk Services Northeast, Inc., Aon Risk Services Southwest, Inc., and Aon Risk Services, Inc. of Florida and their licensed affiliates. All descriptions, summaries or highlights of coverage are for general informational purposes only and do not amend, alter or modify the actual terms or conditions of any insurance policy. Coverage is governed only by the terms and conditions of the relevant policy. Coverage may not be available in all jurisdictions.
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