Does Professional Liability Cover Intellectual Property?

Professional liability can protect a business against claims arising from providing or failing to provide professional services, according to the Texas Department of Insurance. An IP allegation might arise during professional work, but that connection alone does not show that the claim falls within the policy's definition of services, covered wrongful act, or damages. Exclusions may also affect the result.

Review the professional liability insuring agreement, definition of professional services, intellectual-property exclusion, and any carve-back. Confirm whether the claim is made and reported within the required period, whether a retroactive date applies, and how defense costs, prior knowledge, and consent work. If the concern is enforcing your own patent or brand right, do not assume professional liability includes that activity. Ask the insurer to address the particular service and allegation in writing and compare its answer with the proposed endorsement. The policy wording—not the line name—controls.