We all dream about the million dollar idea that sets us up for a dream life. The largest companies and most impressive innovations all started as just an idea in someone’s head. Although it’s not a tangible object, an idea holds an impressive amount of value. So just how do you protect your idea? Getting a patent is one of the first steps to securing ownership of your idea, but ownership of the idea doesn’t always guarantee protection. Patent insurance is one way to insure your original concept.
Contact an independent agent in the Trusted Choice® network for help finding patent insurance. Independent agents have access to a variety of insurance companies, making it easy to find the coverage you need. Unlike “captive agents,” Trusted Choice independent agents have the ability to compare multiple policies and quotes to find the one that meets your needs and fits within your budget. To get the information you need about patent infringement insurance, contact a Trusted Choice member agent right in your area.
Patent insurance is a form of intellectual property insurance. Patent insurance is meant to protect you, as the patent holder, in case someone infringes upon your patent and causes you a business loss. Patent infringement insurance is more of a liability policy for manufacturers. If a company is accused of infringing upon someone else’s patent, the patent insurance policy will cover the legal costs associated with the accusation. While this type of policy may seem unnecessary if you don’t plan on stealing someone’s idea, patent infringement is more common than you may think. Although your intentions may have been non-threatening, a patent holder still has the right to sue you for losses.
There are two types of patent infringement insurance:
Although companies aren’t required to purchase both types of insurance, it’s a more comprehensive policy approach. If you aren’t sure whether you need both policy types, contact a Trusted Choice member agent. Your member agent can analyze your personal situation and recommend a reliable solution.
Intellectual property claims are becoming more common as businesses race to develop the next big idea. Your standard commercial insurance policy isn’t built to protect your from loss due to theft of your intellectual property or an accusation that you’ve infringed upon a patent. In the world of business, it’s not necessarily important whether the idea was originally developed by you, but whether or not you can afford to defend the idea is exceptionally crucial. Obtaining a patent makes it yours, but if a large international company takes you to court for right to your patent, will you be able to afford the legal fees associated with the case?
Being a small or medium-sized business doesn’t mean that you don’t need intellectual property insurance. Even multi-national corporations should start examining policies as business continues to expand globally. Keep in mind that if you have an active lawsuit, you cannot apply for patent insurance. Being proactive during the application stage is your best approach.
On average, patent infringement lawsuits cost around $2.8 million if the disputed idea is worth anywhere from $1 million to $25 million. Damages are usually around $9 million. For small to medium-sized businesses, lawsuits of that amount can easily put them out of business. Compare that risk to the cost of patent litigation insurance, and you may find that you’re more willing to pay the premiums. The rates can run anywhere from a few thousand dollars to over $25 thousand annually.
Like most business insurance policies, patent insurance premiums are based on a variety of factors. The insurance company must examine how many patents you have as well as the industry you work in. Coverage limits and coverage amounts will also determine your premium. One of the main benefits of purchasing patent insurance is the underwriting process, which allows a company to truly see the strengths and weakness of a patent. Taking those results, a company can engage in preventive measures to avoid making a claim and keeping premiums low.
With the ever-changing nature of business, the need for insurance policies that grow with the business is great. When you work with a Trusted Choice member agent, you have access to a variety of policies and insurance companies that understand the nature of business.
Contact a Trusted Choice member agent for help finding the right patent insurance policy for your growing company.