IP insurance guidance: Strategic risk management for intangible assets
For finance professionals, managing risk is paramount.
Intellectual Property (IP) insurance is often the most cost-effective way to protect your client's balance sheet from the catastrophic, unbudgeted costs of litigation.
We partner with you to move beyond basic policy review, providing strategic, litigation-informed guidance on policy selection, due diligence, and activation.
We operate as a discreet, specialist resource to ensure your client's insurance provides genuine, reliable financial protection.
What is it?
IP insurance guidance is a specialist service focused on assessing a business's exposure to IP-related litigation risks and advising on the appropriate coverage.
This includes:
- Inbound cover: Protection against the costs of defending an IP infringement claim brought against your client.
- Outbound cover: Protection against the costs of enforcing your client's IP rights against an infringer (often requiring a higher level of legal due diligence).
- Policy review: Ensuring existing policies are fit for purpose, have adequate limits, and do not contain clauses that render them ineffective when needed most.
How we assist you
We translate complex legal risks into clear financial terms, enabling you to advise your client on a crucial element of their financial health and risk management strategy.
- Risk mapping and exposure assessment: We identify the specific IP risks your client faces (e.g. sector, geography, competitor activity) to determine the necessary level and type of coverage.
- Policy due diligence: We review the small print, eliminating ambiguity on definitions of "infringement," "litigation costs," and "defence," ensuring the policy truly responds when a claim is made.
- Strategic claims activation: When a dispute arises, we manage the entire process of notifying the insurer, demonstrating coverage, and ensuring the policy is correctly deployed to fund the litigation, minimising the client's out-of-pocket expenses.
- Insurance as a strategy: We advise on how to use the existence of strong insurance coverage as leverage in pre-action settlement negotiations.
Our unique capability in this area
Our strength is that we are litigation experts who have worked with and against insurance providers.
We understand the precise requirements needed to trigger coverage and the common grounds insurers use to dispute claims.
- "Litigation-ready" coverage: We ensure the policy documents and underlying IP assets meet the rigorous legal standards necessary to guarantee a payout when the time comes for a claim.
- Clear financial reporting: We provide clear reports outlining the premium cost vs. the potential litigation exposure, allowing you to quantify the return on investment (ROI) of the policy for your client.
- Bridging the gap: We act as the technical bridge between the client, the broker, and the underwriter, speaking the language of both legal risk and financial underwriting.
IP Insurance Guidance: Common Questions and Answers
How does a legal specialist add value beyond the insurance broker?
The broker handles the financial side; we handle the legal enforceability. We check the policy's legal architecture, focusing on the exclusionary clauses, definitions of IP rights, and claims processes. We ensure the policy is aligned with the realities of court procedure and evidence requirements, turning the financial product into a genuine shield against litigation costs.
What are the most common defects you find in IP insurance policies?
The most common defects are often found in the definitions and exclusions. Policies may use generic, non-UK legal terms for IP rights, or they may exclude claims relating to prior knowledge of infringement or breach of contract. Our audit ensures these potential "gotchas" are eliminated before the policy is executed.
Can IP insurance cover both defending a claim and enforcing our rights?
Yes, comprehensive IP insurance is often structured to cover both: defence Coverage (paying legal fees if the client is sued) and enforcement coverage (paying legal fees if the client sues an infringer). We ensure the balance of coverage limits between these two vital areas is commercially sound for the client's risk profile.
How does this service support an M&A transaction?
In M&A, we use this service to de-risk the transaction. We ensure that the acquired business's IP portfolio is fully covered against future litigation, either through existing robust policies or by advising on necessary post-acquisition coverage, protecting the transaction's financial value and indemnities.
Partner with specialist IP counsel
Ensure your client's financial strategy is protected by IP insurance that is robust, relevant, and designed by litigation experts. Use the contact form below to arrange a confidential consultation on how we can collaborate.
Additional Relevant Services
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IP Portfolio Valuation: Determining the Commercial Value of Your Assets.
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IP and Investment Due Diligence: Validating Assets Before Capital is Committed.
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IP in Insolvency: Rapid Asset Realisation and Risk Mitigation.
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IP Commercial Strategy and Advice: Turning Assets into Revenue Streams.
The content on this page is provided for general informational purposes only and does not constitute legal advice. No solicitor-client relationship is created by your use of this site. While we strive to ensure the information is accurate and up-to-date, it should not be relied upon as a substitute for professional legal counsel. For specific advice regarding your legal situation, please contact us directly to arrange a consultation.
Find out more about how we charge for what we do here.