CFC has introduced a new simplified intellectual property (IP) insurance product designed to support companies across sectors, regardless of size. The policy is available to firms ranging from early-stage start-ups to those generating up to £500 million in turnover.
The new product offers cover for defence and pursuit of infringement claims, contractual indemnities, loss of IP rights and loss of profits.
The IP product includes several new areas of cover. These include legal costs associated with claiming IP ownership in disputes, as well as cover for breaches of employment contracts where employees are found to have misused trade secrets or proprietary information.
The policy also allows for indemnity related to reasonable expenses incurred while mitigating claims – such as alternative suppliers, technical analysis, third-party design-arounds, or product recalls. In addition, reputation and brand protection is included, with support for costs linked to engaging public relations consultancies.
CFC said that the policy is intended to provide protection across a wide range of scenarios, reflecting the growing exposure businesses face from IP-related risks.
As intangible assets become increasingly central to business operations, the demand for such insurance has grown. This rise is driven by factors like the surge in digital content, the proliferation of artificial intelligence (AI), and the complexities of global IP enforcement.
The intersection of AI and IP law has been a focal point. In 2024, the European Union's AI Act mandated transparency in AI-generated content, while the US Patent and Trademark Office required evidence of human contribution for AI-generated innovations to qualify for patents. These measures have intensified debates over AI's role in IP creation.
According to Maddi Brown (pictured above), intellectual property practice leader at CFC, noted that legal disputes over IP can lead to unpredictable costs, and smaller businesses in particular may face challenges when involved in such actions with larger firms.
The policy, Brown said, offers broad international coverage including loss of profits and IP rights.
“IP insurance shouldn’t be seen as yet another line on a budget sheet. Rather brokers should be discussing it with their clients as a business enabler, giving them the freedom to operate safe in the knowledge that they have the means by which they can defend themselves against claims of IP infringement or pursue those who are infringing on their patent, copyright or trademark,” she said.
CFC noted that brokers can obtain an online non-binding indication by submitting three data points: the client’s company name, website URL and revenue. The firm said these indications are typically delivered within minutes.
To support broker engagement, CFC plans to run a series of webinars aimed at enhancing understanding of IP cover and encouraging more informed conversations between brokers and clients.
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