Does IP Insurance Cover Patent Infringement?
Some IP products offer patent infringement protection, but covered patents, territories, claim direction, limits, and defense versus enforcement scope vary by policy.
The NAIC identifies patent infringement as an example of an IP insurance claim. A policy may be designed to defend a business accused of infringing another patent, pursue someone allegedly infringing its patent, or provide a selected combination. IPISC's application presents defense and enforcement sections separately, and CFC's US application lists patent defense and patent pursuit as separate choices. Those forms describe specific offerings rather than a standardized grant.
Identify the patent portfolio and products involved, then ask how the proposed form treats foreign allegations, validity challenges, counterclaims, and pending applications. Review the scheduled rights and territories, exclusions, per-claim and aggregate limits, retention, and whether defense costs reduce limits. Confirm whether enforcement needs a separate option and what insurer approval is required before proceeding. A quote should state which patents and business activities are within the proposed cover. The phrase “patent infringement insurance” by itself cannot resolve those policy details.
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 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.
