What Is Patent Defense Insurance?
Patent defense insurance may fund covered costs when your business is accused of infringing a patent. The covered products, claim conditions, and cost-sharing terms depend on the policy.
Patent defense is the defensive side of IP insurance: the business faces an allegation that its product or activity infringes another party's patent. CFC's US application offers patent defense as a distinct selection, and IPISC describes defense coverage for a suit alleging infringement of a patent or other selected right. Those are examples of specific applications and do not establish what another insurer will offer.
Ask which products and patent-related activities are insured and whether the form covers lawsuits, demands, validity counterclaims, and appeals. Check if the insurer controls the defense, selects counsel, or reimburses expenses after approval. Confirm the retention, copay, limits, and whether legal expenses reduce funds for settlement or damages. Disclose known disputes and notices in the application. If the company also wants to sue someone for infringing its patent, ask for enforcement terms separately; defensive coverage does not automatically pay to pursue another party.
Related Coverage
Providers That List This Coverage
Sources
- Intellectual property insurance. CFC; Opening; Defense; Pursuit of infringers; Contractual indemnity; US-facing product offering. 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.
