Intellectual Property Liability Insurance
What is Intellectual Property Liability Insurance?
Intellectual property (IP) insurance typically serves two purposes — it can help companies cover litigation costs related to the enforcement or defense of patents, trademarks or copyrights, and it can help protect policyholders from patent infringement claims brought against them. In today’s economy, where intangible assets are an increasingly large part of corporate balance sheets, companies of all sizes in all industries can benefit significantly from strong IP liability protection.
Why is IP Liability Insurance Important?
Whether you work in your company’s Risk Management, Finance or Legal department, it’s important to know that patent litigation is on the rise and can impact your business at any time. Following several years of decline from 2015 to 2019, case counts increased from 2019 to 2020 and again into 2021. In fact, 4,404 patent suits were filed last year.*
Importantly, the prevalence of patent defenses filed against technology organizations continued to grow, rising to 45 percent of all cases in 2021. In 2015, such cases represented only 35 percent of the litigation landscape. As more companies in all industries pursue digital transformation agendas and seek to build digital-first business models, this trend is expected to continue.*
When it comes to measuring the financial impact of patent litigation, 2021 was also a historic year, with courts awarding $3.8 billion in patent damages. This was the third largest amount awarded in the past 10 years.*
45%
The prevalence of patent defenses filed against technology organizations continues to grow, rising to 45 percent of all cases in 2021.
* Source: Aon 2021 Patent Litigation Trends Report
What Does Intellectual Property Insurance Cover?
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Infringement Claims
Third-party infringement claims for patent, copyright and trademark infringement**
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Products and Processes
Scheduled coverage for products, processes and services
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Competitor and Non-Practicing Entities
Coverage for both competitor and non-practicing entities (patent trolls)
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Appeals and Counterclaims
Coverage for appeals and counterclaims
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Trade Secret Misappropriation
Coverage for trade secret misappropriation claims
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Indemnity Coverage
Contractual indemnity coverage and indemnified party defense
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Loss Mitigation
Loss mitigation through expert witness testimony, technical analysis and design-arounds
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Counsel
Client's choice of counsel
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Post-Incident Response
Post-incident response needs
How Aon Can Help
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Tailored Coverage Against Significant Damages
Using a data-driven risk model, Aon analyzes each client’s risk to deliver highly customized pricing and coverage tailored to its specific business requirements.
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Efficient Policy Placement
Clients experience a streamlined placement process through Aon’s standardized approach to managing the data required by underwriters.
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Competitive Risk Assessment
Aon helps clients assess litigation risks within their specific patent portfolio.
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Post-Incident Support
Should a claim be brought, Aon gives you access to deeply experienced intellectual property professionals who will develop a response plan and create design-arounds to help manage exposure to potentially catastrophic risks.
** Includes (1) litigation expenses, settlements, and damages, (2) post-grant review / re-issue proceedings, and (3) invalidity, rectification, cancellation, or revocation proceedings.
Aon UK Limited is authorized and regulated by the Financial Conduct Authority. FPNAT641
Insurance products and services offered by Aon Risk Insurance Services West, Inc., Aon Risk Services Central, Inc., Aon Risk Services Northeast, Inc., Aon Risk Services Southwest, Inc., and Aon Risk Services, Inc. of Florida and their licensed affiliates. All descriptions, summaries or highlights of coverage are for general informational purposes only and do not amend, alter or modify the actual terms or conditions of any insurance policy. Coverage is governed only by the terms and conditions of the relevant policy. Coverage may not be available in all jurisdictions.
The information contained herein and the statements expressed are of a general nature and are not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information and use sources we consider reliable, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.
All descriptions, summaries or highlights of coverage are for general information purposes only and do not amend, alter or modify the actual terms or conditions of any insurance policy. Coverage is governed only by the terms and conditions of the relevant policy.
300+
The number of clients securing comprehensive intellectual property protection has doubled year over year for the last three years, and monthly submissions into the IP insurance marketplace now exceed 300 per month.
