Pen Underwriting UK has rolled out its intellectual property (IP) insurance offering with the help of capacity provider Tokio Marine Kiln, Insurance Business can reveal.
“With the demand for IP insurance expected to grow strongly due to the corresponding rise in the value of intangible business assets, brokers are looking for more choice in a limited market, which we are excited to provide,” Pen IP head Erik Alsegard (pictured) said in a release sent exclusively to Insurance Business.
“Combining the expertise of specialist underwriters at Pen who really understand this area of risk and exposure for their clients, with the backing of a carrier like TMK who is equally experienced in IP insurance, provides a powerful new proposition.”
Alsegard came on board the managing general agent in April – moving from Gallagher where he served as IP director – to lead Pen’s foray into IP insurance.
He added: “Typically, mention of intellectual property rights conjures up images of life sciences or technology firms, innovators and inventors pushing at the very boundaries of what’s possible. But the fact is every company, large and small, carries risk arising from intellectual property, whether they are aware of their exposure or not.”
Designed as a modular product, the new offering spans infringement liability, contract breach allegations, contractual obligations to indemnify for IP claims, challenges to the insured’s IP rights, and enforcement of the insured’s IP rights against infringers.
“We are very pleased to partner with Pen and help bring its easy-to-access, modular IP insurance proposition to market,” commented TMK IP underwriter Ellie Webb. “It’s important to continue to grow the market in step with anticipated demand to help protect organisations from the substantial financial risks involved with IP-related disputes.”
Aimed initially at UK businesses with international rollout plans, the product can be tailored to specific IP risks or typical exposures, with a focus on ease of trade by featuring simple proposal forms, quick decisions by Pen, and easy-to-understand policy wordings. It can cater for all sizes of business and most industry sectors, according to Pen.
“Our message to brokers is: make sure you arrange cover for your clients’ IP and give them the means to defend themselves in the event of an infringement claim,” Alsegard said. “Losing the right to IP, or to selling products or services due to an IP dispute, can have a devastating effect on a business.”
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