Intellectual Property (IP) Insurance
Why should I partner with PIUS?
- Unsurpassed knowledge and experience:
- Only specialty IP-focused, wholesale-only insurance broker
- Deep relationships with and appointed by all major IP risk insurers
- Subject matter experts known and trusted by stakeholders
- 60 years of combined IP and specialist MGA insurance experience
- Recognized expert in IP coverage design and placement
- Process: We partner with you to educate your clients about IP risk and insurance solutions and to manage the submission, quoting, and negotiation process.
- Materials: We provide marketing materials, proprietary insurance application, proposal presentation.
- Success: We have unrivaled experience to tailor coverage that cost-effectively hedges the financial impact of IP risk on your clients’ businesses.
WHAT IS IP?
Inventions (e.g., drug formulations, WiFi, data analytics, RF, sensors)
Creative works (e.g., software, music, books, photographs, fabric patterns)
Trademarks ® ™
Distinguishing word, symbol, design (e.g., brand names, logos, distinctive designs)
Proprietary rights that confer a competitive advantage by being kept secret (e.g., manufacturing processes, chemical formulas, customer contracts)
What is IP Insurance?
- IP Liability Insurance protects the insured against claims that the insured has infringed or misappropriated a third party’s patent, copyright, trademark, trade secret, or other legally protected intellectual property.
- The insurance typically covers defense costs, settlement and monetary damages.
Why should I talk to my clients about IP risk?
- Financial impact: It is a pervasive and increasing (yet insurable) risk to your clients’ balance sheets.
- Coverage gap: Very few IP risks are covered by even the most expansive liability, tech E&O, media, or cyber policies.
- Contractual requirements: Your clients may be contractually obligated to indemnify others for IP infringement risk, but they may not be aware of their exposure, insurance limitations, or coverage options.
WHAT ARE SOME IP INFRINGEMENT STATISTICS I CAN CITE?
- 3,744 patent cases filed in US in 2020; highest since 2016
- Median litigation expenses for cases with $1-10 million at risk is $2.5 million; average patent infringement dispute cost for $100 million tech company is $1-3 million
- Over 60% of patent cases are filed by non-practicing entities (NPEs) while 40% are filed by operating companies
How do I know if a client needs IP Insurance?
- Affected Business Sectors:
- Tech Companies (software, hardware, resellers, and servicers)
- Manufacturers (proprietary manufacturing processes and manufacturing that uses IoT, AI, robotics)
- Automotive (increased use of sensor and connected device technology)
- Fintech (both suppliers and their financial institution customers)
- Media (e.g., streaming platform providers, video game publishers)
- Etailers (including retailers with large online presence)
- Supplier (often required to provide IP infringement indemnities)
- High profile end-user
- Going public
- Active M&A
- New product/sector/geography
- Insurance renewal strategy discussions
- Previous IP infringement dispute experience
WHO BUYS IP INSURANCE?
What is the current Market landscape?
- Providers: There are ~7 IP insurance providers in the US market
- Typical premium: 1-5% of limit
- Typical limit: $1-10 million
- Average Retention: $100 thousand
- Minimum Premium: ~$10 thousand
- Scope: Tailored by types of IP infringement, subject matter, geography
- Cost Drivers: Revenue, sector, past IP litigation history, geographic sales, scope