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Intellectual Property Insurance in Delaware

Delaware allows an injunction for dilution of a registered or common-law mark or trade name even without competition or source confusion. If your business sells goods or renders services in Delaware, identify state trademark, counterfeit, and trade-secret allegations separately when reviewing defense and enforcement wording. 1

What Is Intellectual Property?

Intellectual property insurance comes in two separate parts: defense, when you're accused of infringing a patent, trademark or copyright, and enforcement, when you pursue someone who copied yours. A defense-only quote doesn't pay for your own lawsuit, so ask for each part you need. Read the national Intellectual property guide.

What to Watch for in Delaware

  • Tie State Mark Rights to Delaware Use

    Delaware treats marks on goods as used in the state when goods bearing them are sold or distributed there; for services, use includes advertising when services are rendered in Delaware. Ask whether the policy’s territory, covered rights, and retroactive date fit the places and classes where you actually use each mark. 1

  • Plan for Dilution Allegations

    Delaware permits injunctive relief for likely injury to business reputation or dilution of a registered mark, common-law mark, or common-law trade name even without competition or source confusion. Ask whether the policy defends state dilution claims and how it handles enforcement costs if your business asserts one. 1

  • Ask About Counterfeit Seizure Costs

    In counterfeit cases, Delaware’s Court of Chancery may order seizure on a good-cause showing and a bond, including in specified ex parte circumstances; the statute provides for a prompt hearing and potential damages for wrongful seizure. A seller or rights holder should ask how defense costs, bond expenses, seized inventory, and business interruption are treated under the actual policy. 1

  • Review Trade-Secret Injunction Terms

    Delaware allows an injunction to continue for a reasonable period after a secret ceases to exist to eliminate a commercial advantage, and in exceptional circumstances may condition future use on a reasonable royalty. If your dispute concerns code, formulas, or operating methods, ask separately about defense costs and settlement authority for an injunction or royalty demand. 2

Who Regulates Insurance in Delaware

Delaware Department of Insurance

The Delaware Department of Insurance licenses and regulates insurers and insurance producers, reviews regulated insurance activity, and handles complaints. Its consumer division can help you raise an insurance concern and its services page links to official license searches. 3,4,5

Surplus-lines tax and stamping office

Reported tax rate: 3% of gross premium, less return premium, when Delaware is the home state When Delaware is the insured’s home state, its 3% surplus-lines premium tax applies to the entire premium of a multistate policy, less returned premiums and excluding federal and state taxes and examination fees. Ask the surplus-lines broker to confirm the home-state determination and tax calculation, and separately explain how exposures are allocated in the required reports; those allocations do not reduce the premium subject to Delaware’s tax. 6,7

Providers With Documented State Licenses

No provider in Spot’s research documents both a state license record and this coverage line. This does not establish that providers are unlicensed. Check the regulator’s license lookup and confirm availability with a provider when requesting a quote.

Questions to Ask Before You Buy in Delaware

  1. Does the policy defend Delaware dilution claims that do not require proof of customer confusion?
  2. How are bond expenses, seized inventory, or injunction-related defense costs handled under this form?
  3. If an employee or vendor misuses our confidential information, are trade-secret and related contract allegations both within the defense definition?

Intellectual Property in Delaware: FAQ

Can a Delaware business bring a trademark dilution claim without showing customer confusion? 1

Yes. Delaware allows injunctive relief for likely business-reputation injury or dilution involving a registered or common-law mark or trade name even without competition or source confusion. That rule does not say whether a policy covers the claim. 1

Can a Delaware trade-secret injunction continue after the information stops being secret? 2

Yes, for a reasonable additional period to eliminate commercial advantage from the misappropriation. In exceptional circumstances, a court may allow future use for a reasonable royalty during no longer than the period an injunction could have barred it. 2

Intellectual Property in Other States

Other Coverage in Delaware

Sources

  1. Delaware Code, Title 6, Chapter 33, Trademarks, Brands and Labels. Delaware General Assembly; §§ 3302(8), 3312–3314: in-state use, infringement, dilution, and counterfeit remedies/seizure. Accessed 2026-09-28.
  2. Delaware Code, Title 6, Chapter 20, Trade Secrets. Delaware General Assembly; §§ 2001–2007, especially §§ 2002, 2003, 2006–2007: secrecy, injunctions, royalties, damages, limitation, and other-law effect. Accessed 2026-09-28.
  3. Delaware Department of Insurance. Delaware Department of Insurance; Official Department homepage and regulatory resources. Accessed 2026-09-28.
  4. Services. Delaware Department of Insurance; Department service directory links to the state insurance licensee search. Accessed 2026-09-28.
  5. Consumer Services. Delaware Department of Insurance; Complaint filing and consumer assistance; publishes Consumer Services phone. Accessed 2026-09-28.
  6. Surplus Lines Bulletin 22. Delaware Department of Insurance; Surplus Lines Bulletin 22 (October 2025; printed day is blank), reproducing 18 Del. C. § 1925: home-state tax treatment, all premium on multistate policy if Delaware is home state, 3% rate, and exclusion of federal/state taxes and examination fees from gross premium. Accessed 2026-09-28.
  7. Delaware Code, Title 18, §§1923–1925. Delaware General Assembly; §1923(a)(1),(12) home-state verification and allocation records; §1924(b)(3)–(6) separate premium reporting; §1925(b)–(c) 3% tax, deductions/exclusions and full multistate premium when Delaware is home state. Accessed 2026-09-28.
  8. Licenses. At-Bay; Current producer introduction and state table; At-Bay Insurance Services LLC; P&C and surplus-lines identifiers. Accessed 2026-09-21.
  9. Licenses and Carriers. Coalition; Licenses and Carriers, re-read 22 September 2026: Insurance Licenses table for Coalition Insurance Solutions, Inc., national producer number 18419475, with producer and surplus-lines numbers for all 50 states and DC including California 0L76155, Georgia 196479, Texas 2199630 and 2205589, Pennsylvania 815731 and 817452, Colorado 539028 and Wisconsin 3000108852. Insurance Carriers table naming, with NAIC numbers, Allianz Underwriters Insurance Company 36420, Arch Specialty Insurance Company 21199, Ascot Specialty Insurance Company 45055, Ascot Insurance Company 23752, Aspen Specialty Insurance Company 10717, Chaucer Insurance Company DAC, Coalition Insurance Company 29530, Fireman's Fund Indemnity Corporation 11380, Fortegra Specialty Insurance Company 16823, Lloyd's of London, MSIG Specialty Insurance USA Inc. 34886, MS Transverse Specialty Insurance Company 41807, Steadfast Insurance Company 26387, Vantage Risk Specialty Insurance Company 16275 and Zurich American Insurance Company 16535. Accessed 2026-09-22.
  10. Insurance Producer Licenses. Corgi Insurance; Current complete Insurance Producer Licenses table for Corgi Insurance Services, Inc.; 50 rows covering 49 states and DC (DC 3003091619); no New Mexico row; no NPN or as-of date shown. Accessed 2026-09-28.
  11. About Hiscox US Insurance. Hiscox; Hiscox Insurance Company Inc. NAIC 10200 as Chicago, IL domiciled insurer admitted or licensed in all 50 states and D.C.; Hiscox Inc. as general agent and Lloyd’s coverholder for Syndicates 33 and 3624; surplus-lines placements through licensed surplus-lines brokers; A.M. Best rating statement. Accessed 2026-09-16.
  12. Licenses. ERGO NEXT Insurance; Current entity-by-state license table reopened 28 September 2026: 50 rows under Next First Insurance Agency, Inc., including Washington, DC; New York rows instead list Next Insurance Services PC-1423070 and AP Intego BR-1198885. Accessed 2026-09-28.
  13. Licenses & Disclosures. RiskCube; Property & Casualty Producer/Broker Licenses; February 11, 2026 version. Accessed 2026-09-16.
  14. Insurance Licenses by State. TechInsurance; Current state table; identifies TechInsurance as a division of Specialty Program Group LLC d/b/a SPG Insurance Solutions; lists DC 3000041536 and labels Rhode Island “Individual licenses,” without an agency license number. Accessed 2026-09-28.
  15. Licenses. Vouch; Effective 16 January 2025: Vouch Specialty Insurance Services, LLC, NPN 19926463; P&C table (50 states and DC); surplus-lines table includes Idaho 870820; footnote says Georgia and Idaho do not issue agency-level surplus-lines licenses; Idaho retained as producer-only due to conflict. Accessed 2026-09-15.

Updated .

This guide is informational and does not determine whether a policy is available or meets your needs. Editorial policy. To suggest a correction, contact Spot with a supporting source.

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