The patent suit
A competitor sues, alleging your product infringes its patent.
IP defense coverage can pay for your legal defense, subject to the policy's terms.
Professional & Technology Liability
Intellectual property infringement, defended before it derails you.
Intellectual property (IP) infringement insurance helps pay to defend your business when it's accused of infringing someone else's patent, trademark, copyright or trade secret. Separate enforcement coverage can help fund action against infringers of your own IP.
What IP infringement insurance covers.
Standard general liability and many E&O policies exclude patent claims and most other IP disputes. For technology and product companies, an infringement suit can cost more to defend than the business can comfortably absorb.
This is a specialty market. Policy types, limits and terms vary significantly, so it pays to start with what your products and contracts actually expose.
- Infringement defenseLegal costs to defend allegations that your products or services infringe a patent, trademark, copyright or trade secret.
- Damages and settlementsCovered by some policies; others are defense-only.
- Enforcement (abatement)Optional coverage that helps fund litigation against those infringing your IP. Many policies share in any recovery.
- Customer indemnitySome policies can respond to indemnities you've given customers for infringement, when included.
What it typically doesn’t cover
- Known disputesClaims or infringement you knew about before buying coverage.
- Patent claims under E&O or media policiesTypically excluded there, which is why IP coverage exists. Professional Liability / E&O Insurance
- Damages on defense-only formsSome policies pay defense costs but not judgments or settlements.
Coverage descriptions are general summaries. Actual coverage is governed by the terms, conditions and exclusions of the policy issued. Availability varies by state and carrier.
Real-world examples
What a claim can look like.
Claims rarely look dramatic at the start. They usually begin with an ordinary day, an email or a phone call.
The brand dispute
Another company says your new brand name infringes its trademark.
Defense costs, and damages where covered, can be paid.
The copied design
You discover a competitor copying your patented design.
Enforcement coverage, if purchased, can help fund action against them.
Examples are illustrative. Whether a claim is covered depends on the facts and the terms, conditions and exclusions of your policy.
Often paired with
Professional Liability / E&O InsuranceClaims alleging that your professional advice, services or work caused a financial loss.Cyber Liability InsuranceFinancial protection against data breaches, ransomware, network security incidents and other cyber-related exposures.Directors & Officers (D&O) InsuranceProtects company leaders and the organization against claims alleging wrongful management decisions or actions.General Liability & Products Liability InsuranceThird-party bodily injury, property damage and products-related claims.Questions
Common questions about IP infringement insurance, answered.
Does general liability cover IP infringement?
Only narrowly. General liability may cover certain advertising injury claims, but patent infringement and most trademark claims outside advertising are typically excluded.
Is IP insurance the same as tech E&O?
No. Tech E&O covers errors and failures in your technology services or products. IP insurance focuses on infringement allegations, especially patents. Some companies need both.
How much does IP infringement insurance cost?
IP insurance is underwritten individually. Pricing depends on your products and services, the markets you sell into, your revenue, your IP portfolio and history, and the limits, retention and coinsurance you choose. We compare options across our carrier relationships so you see real prices for your business, not an average.
Talk to an advisor
Let's get this fitted properly.
Tell us about your business. A principal will review your needs, shop the market and walk you through the options in plain English.