Does IP Insurance Cover Damages?

Damages are not necessarily treated the same as legal expenses. The UK Intellectual Property Office describes IP products that cover legal costs and other products that cover damages, while stressing that offerings differ. This is useful for understanding the distinction but does not dictate US wording. IPISC's application offers a defense option for litigation expenses and damages if selected; CFC describes damages and settlement costs in its product overview. Those statements apply to the named offerings, not every policy.

Read the definition of covered loss and identify judgments, settlements, royalties, punitive or multiplied damages, and amounts deemed uninsurable under applicable law. Check whether damages have a separate sublimit and whether attorney fees reduce the same limit. Ask how the retention and coinsurance apply and whether one dispute involving several rights counts as one claim. Compare limits only after understanding which payments erode them. If the proposal says “defense only,” ask specifically whether any damages or settlement amount is included.