You may get all your tangible business assets that you care about and that are vital to your operations and overall success insured (i.e., real estate building, specialized equipment, company vehicles, company electronics, sales inventory, etc). So, this should be no different than your important intangible business assets, namely your intellectual property (IP) (i.e., trademarks, copyrights, etc). Without need for further introduction, please read on to discover some reasons why you should get intellectual property insurance and how a seasoned New Jersey intellectual property insurance coverage lawyer at The Ingber Law Firm can help you obtain it.
What Is Intellectual Property Insurance and Why Does It Matter?
Intellectual property insurance is a form of special business insurance that covers legal costs associated with intellectual property disputes. This can help cover expenses related to filing infringement claims, enforcing your own rights, or even compensating you for financial losses incurred from litigation. Because intellectual property typically represents a portion of a company’s value, failing to protect it can result in considerable financial and operational losses.
When Intellectual Property Insurance Covers
Intellectual property insurance typically covers the following key risks and costs:
- Legal representation in infringement claims
- Covers attorney’s fees, court expenses, and settlements in the event your business is accused of violations
- Enforcement
- Helps cover the cost of legal action against those who infringe upon your intellectual property
- Business interruption
- Can compensate for lost revenue if an injunction prevents you from utilizing certain intellectual property
- Settlement and damages
- Can assist with financial obligations from settlements or judgments
What Are Some Reasons I Should Get Intellectual Property Insurance?
The general purpose of purchasing insurance is to financially protect yourself against potential losses or unforeseen events that may come with a given property. For the sake of your business’s intellectual property, there are a number of reasons you may want to consider insurance coverage.
Key Reasons to Consider Investing in Intellectual Property Insurance
- You may cover the costs associated with defending yourself in an IP infringement claim made against you or entering a settlement agreement
- You may cover the costs of an injunction against your business and subsequent loss of revenue after an IP infringement claim is made against you
- You may cover the costs associated with enforcing your intellectual property rights and pursuing legal action against a third-party infringer
- You may entice potential investors and lenders by demonstrating that you have an impressive risk management plan in place to protect your IP
- You may have peace of mind knowing you can grow your business without devastating IP disputes jeopardizing your financial standing
When Does Intellectual Property Insurance Coverage Apply?
Intellectual property insurance coverage is generally triggered at specific stages of a legal dispute. Understanding when the policy applies is imperative, as insurers may attempt to limit or even deny coverage based on when and how a claim arises.
Common Situations Where IP Insurance May Apply
- Cease and desist letters
- Coverage may apply when you receive a demand alleging infringement and requiring action prior to litigation
- Filing or receipt of a legal complaint
- Insurance may cover defense costs once a formal lawsuit is initiated
- Counterclaims and third-party claims
- Even if you initiate a claim, insurance may be required to defend against counterclaims
- Judgments and settlements
- Coverage can extend to damages or settlements, depending on the terms of your specific policy
- Appeals process
- Some policies require insurers to fund appeals if they had a prior duty to defend
What Happens if I’m Not Covered by My Intellectual Property Insurance?
Even though you have bought into intellectual property insurance, your provider may claim that your specific policy does not cover your current legal dispute. Just like any other insurance type, your IP insurance policy may be written in very vague and broad language that allows it to make this argument. You should not give up at this initial rejection by your insurance provider. Rather, you should take your insurance claim and IP infringement claim to a seasoned intellectual property insurance coverage lawyer.
Of note, the Ingber Law Firm has historically been successful in representing small and mid-sized businesses in New Jersey and the greater New York area with IP insurance litigation, much like your own. We will conduct a preliminary analysis of your insurance policy (i.e., amendments, declarations, endorsements, etc). and any served documents in your IP infringement case thus far (i.e., cease and desist letters, legal complaints, etc). From here, we will give you an honest answer on how successful you may be in fighting for insurance coverage, and even with winning your legal dispute.
Steps to Take if Your IP Insurance Claim Is Denied
- Review the language in your policy carefully
- Gather all relevant documents
- Contact an experienced attorney quickly
- Do not hesitate, as delays can impact your ability to recover compensation
Contact an Experienced New Jersey Intellectual Property Attorney Today
If you find yourself in need of legal aid, look no further than a competent Essex County, New Jersey, intellectual property lawyer. Whether you simply have a legal question or require legal representation in an upcoming court case, our team at The Ingber Law Firm is willing to help out. Please pick up the phone and call us today.