Some insurers have responded by creating and offering insurance specifically designed to cover these claims. Stand alone infringement insurance policy, which covers any alleged patent infringement by the insured arising from distribution, advertising, sale, etc. Infringement must begin during policy or during a previous continuous policy period within which the intellectual property was covered. Loss payable includes litigation cost and diminution in value of the insured intellectual property. Chief advantage of this insurance is it will cover losses that are not covered or may not be covered by CGL policies.
Policies are expensive.
That may depend upon the risk to the particular company as evaluated by the insurer, however, and since these products are new, premiums may go down as risks are better evaluated. Evaluation may be difficult. Insurer is likely to ask that company provide a fairly detailed description of its intellectual property or provide it enough information from which it can evaluate exposure. LATE A. Perform an assessment of exposure to infringement claims, and to risk of diminution of one's own intellectual property 1. C. Evaluate existing coverage under CGL policies.