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Intellectual Property Liability Insurance

Coverage for losses (including defense costs) resulting from third party claims alleging infringement by or invalidity of the insured’s intellectual property.  

Intellectual Property Liability Insurance can be flexibly tailored to:

  • cover the entirety of a company’s intellectual property portfolio
  • focus on specific intellectual property assets, products, or services
  • respond to liabilities in respect of licensing agreements

A company’s intellectual property assets, or those products and services utilizing intellectual property, often account for a significant percentage of enterprise value. Given the sustained frequency and high cost of intellectual property disputes, Intellectual Property Liability Insurance is particularly valuable for protection against critical losses to a company’s assets.

Ambridge distributes its products through insurance brokers or intermediaries which are licensed in the jurisdiction in which the insured is located. To determine how Intellectual Property Liability Insurance can best respond to your coverage needs, please contact Ambridge through your licensed insurance broker.

Intellectual Property Liability Insurance Case Studies

A company’s new owner intends to improve the company’s operations and then sell it within a three-year window. The company’s most valuable asset is its intellectual property portfolio. Despite being satisfied that an infringement lawsuit is unlikely given the diligence conducted before purchasing the company, the average cost of defending an infringement lawsuit in the company’s industry sector is above $1,000,000. An Intellectual Property Liability Insurance policy may be utilized to insulate the new owner from go-forward risk.

A group of university professors has developed proprietary software and are in the process of licensing it to a large company for use in a new product. As is typical, the company is requiring an indemnity to cover costs and any liability incurred as a result of allegations that the licensed software infringes on a third party’s intellectual property rights. The professors may not have the financial means to provide such an indemnity. However, obtaining an Intellectual Property Liability Insurance policy may be a more economical or attractive means of covering indemnification obligations under the license agreement.

During a review of its insurance portfolio, a company’s board concludes that its biggest uninsured asset is its intellectual property. For a reasonable premium, Intellectual Property Liability Insurance may cover both the exposure associated with the costs of defending an intellectual property claim, as well as any liability the company might incur as a result of such claim.

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Frequently asked questions

Ambridge has appetite within a broad variety of industries including aerospace, agriculture, beverage, chemicals, food products, household goods, alternative/clean energy, industrial metals, automotive, publishing and entertainment, personal goods, textiles and apparel, travel and leisure, transportation, energy and utilities, and construction and engineering. Our appetite for companies in the computer hardware, electronics, gaming, medical equipment, telecommunications, semiconductor, and pharmaceutical industries is more limited.

Yes, Ambridge policies provide worldwide coverage. However, we are most competitive on risks based in Europe, North America, Australia, and New Zealand.

Ambridge generally targets companies with under GBP/EUR/USD 2 billion in annual sales.

While Intellectual Property Liability Insurance is not designed to provide coverage for matters where infringement has already been alleged, please contact us to discuss the situation and your requirements. One of our other products may be responsive to your insurance needs.

Yes, we would be happy to have a call with you and your insurance broker to discuss some basic information about your company and your portfolio. After this call, we should be able to provide you with a non-binding outline of what terms might look like together with a list of what documents and information we would need in order to provide binding terms.