Multi-Peril IP Insurance for Business Disruptions

Product Overview

       The Multi-Peril IP Insurance (MPIP) policy (which can be an add-on to another policy as a rider) provides first party coverage (typically, your company) for financial losses due to adverse intellectual property (IP) events such as Business Interruption, Loss of Commercial Advantage and the Cost of Redesign, Remediation & Reparations. These adverse happenings are in the form of legal actions by or against IP owners and/or third parties.

       Multi-Peril IP Insurance is automatically included as a Rider to the standard IP Enforcement or Defense Insurance Policy, with these limits: $50K (USD) per Claim/Aggregate or 10% of Policy limits, whichever is less. For an additional premium, limits in excess of $50K are available up to $1M; higher limits may also be available for an additional premium.

       This MPIP rider comes into force after the final adjudication of a civil proceeding that directly caused or established the financial loss..

       If your company is an IP holder or a third party beneficiary, and has purchased the Patent Enforcement policy, then you can reduce the risk of an adverse lawsuit decision (such as having your patent invalidated) if you have MPIP insurance. If your company is an IP holder or a third party beneficiary, and has purchased the Patent Defense policy, then you can reduce the risk of an adverse lawsuit decision (such as being found guilty of patent infringement, or having an injunction applied to your company's activities) if you have MPIP insurance.

Features & Benefits

       Disruptions to your business that are covered include: Loss of Commercial Advantage; Business Interruption; and Cost of Redesign, Remediation and Reparation.

       Two occurring events trigger this Insurance Rider, (1) a Civil Proceeding must be initiated which seeks a result covered by the Policy; (2) there must be an Adverse Happening, which results in the Named Insured (e.g., your company) suffering a Loss/Cost or loss of Business Income. If the Civil Proceeding is settled, the second condition has not been met, and the Policy does not apply.
Claim Information


       1) The Named Insured (e.g., your company) may be reimbursed by the MPIP Policy by triggering one or more Adverse Happenings caused by the Loss/Cost consequence of legal actions by or against the Named Insureds and/or third parties.

       2) Upon compliance with the policy terms, IPISC will report its decision on reimbursement of the Claim(s) in writing to the Named Insured as soon as practicable, after receipt of all material required.

       The Policy Holder controls the lawsuit to which the MPIP policy is a rider; however, IPISC may suggest reliable and preferred counsel to the Insured but the Insured ultimately chooses. Counsel must adhere to litigation and billing guidelines set forth by IPISC to ensure the full value of the policy. The Insured dictates the settlement terms, if any.