What Is the Duty to Defend Reimbursement in IP Insurance?

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If you have opted for insurance coverage of your intellectual property, then this may work in your favor if you were to ever have to defend against infringement claims. Though, you must make sure that you are receiving your fair share of coverage. Continue reading to learn when the duty to defend reimbursement applies and how an experienced New Jersey intellectual property insurance coverage lawyer at The Ingber Law Firm can be of assistance.

What is the duty to defend reimbursement?

If and when you report a potentially covered claim against you in a timely manner, your intellectual property insurance company holds a duty to defend reimbursement. Meaning, your insurance company must appoint and pay for a defense counsel that can defend you against the claim.

This is unless you have already selected your own counsel. In this case, then your insurance company must reimburse you for the attorney’s fees that came with defending yourself. It is important to note that your right to select your own counsel is dependent on your insurance policy’s terms and conditions, along with New York State law. So you must verse yourself on your policy’s language before you independently retain the services of an intellectual property attorney.

When does reimbursement of defense fees apply to IP insurance?

There are many different instances in which reimbursement of defense fees should be triggered by your intellectual property insurance company. Examples are as follows:

  • You receive a demand to cease and desist from infringement (which is usually covered by Commercial General Liability Insurance Coverage).
  • You receive a demand to license under asserted intellectual property rights (which is usually covered by Commercial General Liability Insurance Coverage).
  • You receive a complaint (as long as you give prompt notice to your insurance company).
  • You receive a counter-claim (in addition to funding the prosecution of the complaint).
  • You receive a third-party claim (in addition to funding the prosecution of the complaint).
  • There is an entry of judgment (which does not negate a prior existing duty to defend on your behalf).
  • There is a notice of appeal (in addition to funding the appeal).

All in all, we are prepared to provide you with a consultative review of your current insurance coverage, legal malpractice defense services, or any other legal service you need to receive compensation for the legal expenses you incurred in defending against your unfair competition, copyright, or trademark lawsuit. We will do this through negotiation, and when necessary, through litigation.

Pick up the phone and call a skilled Essex County, New Jersey intellectual property lawyer from The Ingber Law Firm today. You may discuss this matter with us in a free initial consultation. We look forward to hearing from you.