CFC has released an insurance product for licensing agreements that expands on the company’s suite of media and intellectual property insurance products.
According to the company, the global licensing industry is rapidly expanding as brand owners increasingly monetize their intellectual property assets – like logos, trademarks, graphics and animations – through third parties.
However, the Covid-19 pandemic has halted a long line of global events, and the financial impact of each cancellation or rescheduling decision could have a catastrophic effect for promotional partners, licensees and businesses involved in merchandising.
According to Jade Giltrap, Media Team leader at CFC, license agreements often include a mandated insurance requirement, but the market has struggled to deliver a customized option, leaving clients to instead purchase a media liability policy. CFC’s product is standalone coverage designed specifically for these licensing exposures, Giltrap said.
The product is designed to protect licensees against unintentional breach of a licensing agreement and offers fit-for-purpose coverage for individual licensing contracts or annual licensing agreements between multiple brands and the licensee.
CFC’s new product includes cover for breach of the license agreement, including selling in unauthorized channels or territories, incorrect usage or quality assurance breaches, and improper sublicensing among other activities. The policy also includes cover for intellectual property infringement in relation to the asset(s) specified in the agreement.
CFC offers a range of commercial insurance products built for emerging risks. Headquartered in London, CFC serves more than 100,000 businesses in over 80 countries.
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