Does Cyber Insurance Cover Intellectual Property?

The Federal Trade Commission's small-business cyber insurance guidance lists losses related to defamation and copyright or trademark infringement among examples of third-party cyber coverage. The overview is general guidance, not a promise about every cyber form. Its examples do not establish patent or trade-secret coverage, nor do they show that an unrelated marketplace or licensing dispute triggers cyber protection.

Read the policy's definition of a covered security or privacy event and the exact media or IP liability grant. Check whether the claim must arise from an incident, online content, or a specified activity; review exclusions and any sublimit. A dedicated IP policy may use another trigger and may offer defense or enforcement separately. Compare reporting conditions, retention, defense-cost treatment, and coordination with other insurance. If the concern is stolen confidential data, distinguish response costs after a breach from litigation over ownership or misappropriation of a trade secret. The label “cyber” does not answer that distinction.