Do Software Companies Need IP Insurance?
Software firms may evaluate it for code, product, patent, copyright, or licensing disputes, but the quote should identify the software and activities insured.
Software businesses can face allegations about patent infringement, copied code, ownership, licensed components, or use of confidential information. These risks are not all the same. The NAIC identifies copyright and patent infringement among IP insurance examples, while specialist application materials ask businesses to describe products, rights, ownership, and licenses. A technology company's general description does not show that a particular product release is scheduled.
Explain whether you develop software, host a service, customize code, integrate third-party tools, or license components. Ask if the policy covers each activity and how it treats customer modifications, open-source components, contractor work, and contractual indemnities. Compare IP exclusions in E&O, media, and cyber policies. Check the product schedule, territories, defense costs, retention, and treatment of counterclaims. If enforcement of your own copyright or patent is important, ask for that option separately. Confirm in the form that the underwriter's assumptions match your current and planned software.
Related Coverage
Providers That List This Coverage
Sources
- Small Business Insurance. National Association of Insurance Commissioners; Other types of business liability insurance. Accessed 2026-09-25.
- Intellectual property insurance. CFC; Opening; Defense; Pursuit of infringers; Contractual indemnity; US-facing product offering. Accessed 2026-09-25.
- Intellectual Property Insurance application form — US. CFC Underwriting Limited; Sections 1–2 pp.1–2; Section 3 pp.3–4; Section 4 p.4; Section 6.1 p.5; Section 6.2 p.6. Accessed 2026-09-25.
- IP Infringement Insurance Application. Intellectual Property Insurance Services Corporation; p.1 specimen request; Section 1 pp.2–4; Defense Section 2 pp.5–6; Enforcement Section 3 pp.7–9. Accessed 2026-09-25.
