Intellectual Property Insurance

When your ideas ARE your business

Intellectual Property Insurance

If someone stole your business idea, could your business survive? Worse still, what if someone accused you of stealing their idea?

Our intellectual property experts have been protecting IP (AKA the stuff you can’t see) since 2002. We know what questions to ask and how to get the best possible price. So you’re not just protecting your ideas, you’re showing you can afford to defend them.

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What is Intellectual Property Insurance?

The full name for IP Insurance is Intellectual Property Rights Litigation Insurance. And yep, it’s a bit of a mouthful. Which is probably why most people call it patent insurance or insurance for intellectual property. But patents are just one of the things covered by Intellectual Property insurance alongside trademarks, trade secrets, designs and copyright.

IP insurance does two things: it helps you defend yourself if another business accuses you of copying their idea. And it covers the cost of pursuing other businesses that have copied your ideas.

IP insurance used to be a niche, expensive, and complex insurance product. Now, it’s easy to buy, it’s cost-effective and we can get you a quote with as little information as your trading name and website address.

“We’ll help you send a strong message to your competitors that not only are you protecting your IP rights, but you can also afford to defend them.” John Goodson, Chartered Insurance Broker

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Alternatively, give us a call on: 0118 916 5480

What does Intellectual Property Insurance Cover?

IP insurance helps you defend claims against your business, pursue businesses that have copied your ideas, and also covers claims related to IP clauses in commercial contracts.

Intellectual property insurance coverage includes:

Defence against infringement claims
- Legal costs for a patent lawyer if someone alleges that you’ve infringed a patent, trademark or copyright
- Award costs if an infringement is found
- Loss of profits resulting from an injunction that stops you selling your product or service
Enforcement of your own IP rights
- Legal costs to pursue or challenge unauthorised use of your IP
Contract disputes
- Legal defence costs and awards if your customer or supplier is affected by a challenge to your Intellectual Property Rights.

What IP Insurance Doesn't Cover

While intellectual property insurance offers great protection against many IP risks, there are still some things it won’t cover. Typically, IP insurance policies don’t include protection for:

Cybersecurity breaches and data theft: These need their own separate cyber insurance policies, as IP insurance won’t cover cyber threats or digital platform attacks.
Intentional infringement : If you deliberately infringe on someone else’s IP, the claim won’t be covered.
General business risks: IP insurance is focused on intellectual property disputes, and won’t cover other operational or financial risks that have nothing to do with IP.
Certain contractual liabilities : While many IP insurance policies cover contractual indemnities related to IP, there may be certain exclusions depending on the policy terms.

It is vital to understand these exclusions before buying an IP insurance policy, to make sure you have the right protection in place for your business.

Working with intellectual property expert brokers can really help you identify any gaps in your coverage and find the right policy for your company's needs.

Who needs IP insurance?

If your business depends on an exclusive idea, product design or trade name, we’d strongly recommend IP insurance.

In particular, Intellectual Property Insurance is ideal for:

Tech and software developers
Product manufacturers (pre or post patent registration)
Media or design consultancies
Product designers and engineers
Businesses who have IP obligations or clauses in contracts with suppliers, customers or franchises
Businesses who have applied (or are considering applying) for a patent
Businesses with innovative product lines (startups or simply a new product)

Any organisation whose success is reliant on protecting its trademarks or trade secrets

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Why is IP insurance important?

Accidental and unintentional IP infringement is happening every day. Your idea might seem original, but the ownership of ideas is always open to an expensive challenge. And if your business is built on ideas, IP infringement is a huge risk.

So the big question is: could your business afford to stop trading while you sort out a dispute of ownership?

Intellectual property risks are greater than ever:

It’s easy to unintentionally infringe someone’s intellectual property rights
Patent ‘trolls’ are becoming more common. These non-practicing entities buy patents with the sole purpose of suing other businesses
The cost to defend your ideas, patents or designs could put you out of business
If you’ve invested in R&D, machinery, suppliers, developers or stock holdings and you have to suddenly stop selling your product, your business may not survive

The good news? Although it’s easier than ever to infringe IP, it’s also easier than ever to get IP insurance.

Thanks to AI, it’s easy to unknowingly steal intellectual property. And ‘registered’ patents, designs, trademarks and copyright are only useful if you can afford to legally defend them.

Common Intellectual Property Disputes

Technology companies can find themselves in intellectual property disputes that can put their very survival at risk. Having a comprehensive IP insurance policy in place is a big help in defending challenges by covering your legal defence or pursuit costs and awards. It gives businesses peace of mind and financial protection.

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Software creation and adaptation

If your software code is copied or someone accuses you of copying their owned rights to the code, even if all you’ve done is replicate the functionality of their software, you could be in for a world of trouble.
Development outsourcing

When you outsource your software or technology development, things can get messy if the contract does not clearly state who owns the resulting IP. This can lead to disputes over who gets to hold onto the intellectual property.
Licensing agreements

Breach of software licensing terms – for instance, exceeding user limits or unauthorised use – can end up in an IP infringement claim, and you’ll probably end up with a contractual dispute on your hands too.
Patent infringement

If you get accused of infringing someone else’s patented invention rights, you could be looking at costly IP litigation and damages to pay out.
Trademark and copyright infringement

If someone gets a bit too comfortable using your brand assets, logo or creative works without permission, you could find yourself in a fight to protect your reputation and market position.

IP Infringement Liability Insurance Trends

The world of intellectual property insurance has undergone a significant transformation in recent years. IP infringement liability insurance has become a lot more accessible – offering a wider range of coverage and comprehensive protection that doesn’t break the bank. This shift is largely in response to businesses, especially those in the tech, software development, life sciences and manufacturing sectors, being made more aware of the risks associated with IP. These industries are often heavily reliant on intangible assets – and this makes intellectual property protection crucial.

More and more businesses – whether they’re start-ups or well-established companies – are starting to grasp just how costly IP litigation can be, not to mention the financial risk of being on the receiving end of IP claims. As a result, there has been a noticeable increase in demand for IP insurance products. Insurers are now offering tailored policies that cover legal costs, damages and enforcement costs. Plus, they’re regularly including coverage for contractual disputes and indemnities related to intellectual property rights – which can be a huge help to businesses when licencing or selling their products via other businesses.

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Patent Insurance

Patent insurance is just another name for Intellectual property insurance. So, if you’re looking for patent infringement insurance, you’re in the right place.

Patents are just one of the intangible assets covered by IP insurance alongside copyright, trade secrets, trademarks and product designs

Copyright and intellectual property protection. A person using laptop with icons copyright, intellectual property, legal balance scales, patents, technology law, digital rights, and protection.

I have a registered patent so why do I need insurance for patent infringement?

Having a registered patent is great. But unless you can afford to pay the legal costs to defend your patent, it might not be much help. Patent insurance (AKA intellectual property insurance) will cover your legal fees (and settlements) so you can afford to defend your patent.

Who needs patent insurance?

If you have a registered patent that protects you by law, patent insurance will cover the cost of protecting and defending that patent.

And having patent insurance sends the message that you can afford to defend your patent. Which can be enough to put off potential litigants.

Patent insurance is particularly important for companies developing ideas and products, or seeking investment in:

Tech and software
Pharmaceutical
Biotech
Manufacturing

Having patent insurance sends the message that you can afford to defend your patent.

Why choose Macbeth?

Our Chartered status isn’t just a title – it’s a badge of trust
You’ll always get to deal with a real, human person (no bots or self-service here)
We have an in-house claims team

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Intellectual Property FAQs

What is an infringement of your IP rights?

IP infringement is when a person or a company uses or copies your idea (AKA your intellectual property) without your permission.

How can intellectual property be protected?

You can legally protect your intellectual property with patents, copyright and trademarks. But to financially protect your intellectual property, you may need intellectual property insurance so you can afford to defend or pursue a claim.

Does professional indemnity insurance cover intellectual property?

Professional indemnity insurance may cover legal defence costs and damages as a result of unintentional IP infringement. But professional indemnity insurance often excludes patent infringement, and does not cover the costs of pursuing others who breach your IP rights.

What are the benefits of IP insurance?

The main benefits of IP insurance are:

Being able to defend your intellectual property (your ideas) if someone accuses you of copying them and
Pursuing someone who may have copied your ideas.

But there are also other lesser-known benefits of IP insurance. For example, having IP insurance may deter potential litigants. And, if you’re trying to attract investors, IP insurance can make a investment feel less risky, because if your IP rights are challenged, your insurance will cover the cost to defend them.

What is the best way to protect a patent?

Intellectual Property Rights insurance is the best way to protect you against the costs of the specialist legal support needed to defend you, or to pursue those who seek to copy your patented product or process. Cover can also be considered for the financial impact of an injunction or a challenge to the validity of your patent rights.

What is patent liability insurance?

Patent liability insurance is just another word for intellectual property insurance. If you have a registered patent, patent liability insurance covers you for legal costs and other financial losses in the event that someone infringes your patent or, accuses you of infringing their patent.

What's Insured Litigation?

Insured litigation is when your intellectual property rights get tangled up in a dispute – and you have it covered by an insurance policy. This includes all the chaos that comes with being accused of infringing on someone else’s rights, trying to make those people stop, or getting into a fight over a contract related to your IP.

The insurance helps keep the financial hit to a minimum by covering the lawyer fees, any damages you have to pay, and other expenses. It’s crucial for businesses that don’t want to get wiped out by the cost of IP litigation.

What Types of Intellectual Property Are There?

The main types of intellectual property are patents, trademarks, designs, copyrights, and trade secrets. Patents protect inventions – the actual working bits of stuff. Trademarks keep your brand name and logo safe from imitators. Copyrights cover your creative work, like books and software. Trade secrets protect the confidential stuff you don’t want the world to know about.

See our guide on the Main Types of Intellectual Property for further information.

Do You Need IP Insurance?

If your business lives or dies on its unique ideas, products, or branding, then getting IP insurance is a no-brainer. It’s a safety net for when someone claims you’re infringing on their rights or you need to defend your own IP. It keeps your business from getting wiped out by the cost of a messy dispute.

How Much is IP Insurance Going to Set You Back?

The cost of IP insurance varies depending on what kind of business you have, how valuable your IP is, how much coverage you want and where in the world you operate. Prices can range from a few hundred to tens of thousands of pounds a year.

If you want an accurate quote that suits your business, talk to our team of specialist brokers who can give you the full picture.