What Is Trade Secret Insurance?

Trade-secret insurance concerns claims about confidential business information, such as alleged misuse or unauthorized disclosure. CFC says its IP product addresses trade secrets and describes defense and pursuit options. IPISC's application includes trade-secret enforcement as a selectable coverage. Those are provider-specific descriptions; they do not establish that any IP policy covers both defending and pursuing a trade-secret claim.

Describe the information, who can access it, how the company protects confidentiality, and the agreements governing employees, contractors, and licensees. Ask whether the coverage applies to defense, enforcement, investigation, lost profits, or damages, and whether a particular type of alleged disclosure is excluded. Review contractual-liability, employee, prior-knowledge, and cyber-related exclusions, along with notice and consent rules. Cyber insurance may help with a covered incident response, but it is not automatically litigation coverage for misappropriation. Check the schedule, limits, retention, and full policy wording before relying on a broad “trade secret” product description.