Many clients are unaware that intellectual property (IP) risks are frequently inadequately covered by traditional insurance products and, as a result, they actually could be “dangerously underinsured” due to these coverage gaps, according to Ian Lewis, IP underwriter at Tokio Marine Kiln (TMK).
“Despite costs for resolving IP disputes being at an all-time high and the complexity of cases increasing, many common insurance products exclude or feature inadequate sub-limits for key exposures such as patent infringement and theft of trade secrets,” according to Lewis who spoke at TMK’s inaugural Intellectual Property Masterclass event in London.
(Editor’s note: This article was based on a press release about the event, which was issued by TMK).
“Clients are often surprised to hear that standalone IP insurance is available to cover these gaps,” he told brokers at the event.
Commenting on the common misconceptions and the increasing threat of intellectual property disputes, Lewis said: “Every day trading creates IP risk. Today, a business does not even need to own intellectual property rights such as patents or trademarks in order to be accused of infringing another company’s IP.”
Lewis urged brokers not to be afraid of engaging with their clients on intellectual property.
“As an industry, we need to do a better job of explaining IP exposures to our clients and informing them of the protections that are available,” Lewis said.
Source: Tokio Marine Kiln