Does IP Insurance Cover Trade Secrets?

Trade-secret disputes can run in either direction: another party may accuse your business of misuse, or you may want to pursue someone who allegedly took your confidential information. CFC's IP product description includes trade secrets among rights it says its product can address, and IPISC's enforcement application lists trade-secret enforcement as an available selection. These are company-specific descriptions and do not establish that all IP policies cover both defense and enforcement.

Ask the insurer to identify the grant for trade-secret misappropriation and specify whether it addresses defense, enforcement, investigation, or resulting damages. Explain how the business protects secrecy and uses confidentiality agreements, because the facts and policy definitions can matter. Check exclusions related to employees, contractors, licenses, contractual obligations, or prior knowledge. If the concern is a cybersecurity event, separately examine incident-response coverage and whether cyber liability includes the relevant claim. Review the schedule, limit, retention, reporting rules, and consent conditions before taking action against an alleged misappropriator.