CFC has launched a new product designed to address intellectual property (IP) infringement risks facing buyers undertaking a merger or acquisition. The product offers protection to buyers for IP infringement risks associated with their merger or acquisition.
According to Angus Marshall, Transaction Liability Practice leader at CFC, buyers frequently purchase transaction liability insurance to protect themselves against financial loss resulting from breaches of the representations and warranties made by the seller regarding the company being acquired, including reps and warranties in relation to IP.
“While these policies afford some IP protection, the extent of this protection can vary depending on the scope of the IP reps and warranties,” Marshal said.
As an example, the relevant IP reps and warranties may include qualifiers which typically relate to issues which occurred prior to acquiring the company and do not provide any protection future IP infringement allegations.
Kristian Kolsaker, Intellectual Property Underwriter at CFC, said a standalone IP insurance policy protects the target against IP infringement allegations including patent infringement.
Adding CFC’s standalone IP cover to CFC’s reps and warranties insurance gives insureds IP coverage for both past and future IP risks via a single underwriting process, she said.
CFC’s dedicated IP insurance underwriting team, based in London, is made up of IP underwriters and backed by a panel of claims adjusters and risk management partners.
It’s IP coverages include:
- Stand-alone IP insurance: Cover provided for claims arising out of the IP of a target’s business, which specifically covers for legal expenses and damages arising from IP infringement allegations.
- Media license agreement liability insurance: Designed for businesses that use third-party IP (i.e. brands, logos, images, or characters) pursuant to media license agreements like sponsorship or endorsement deals, brand collaborations, or naming rights agreements. This will cover unintentional breaches of those agreements as well as claims alleging infringement from either the licensor or another third-party.
- Industry-specific package policies: Defense costs cover provided as part of a package policy for specific industries where IP is a critical asset (such as the life sciences, media & entertainment, professional services and technology industries).
CFC is a specialist insurance provider of emerging risk products. It offers a range of commercial insurance products is purpose-built for today’s risks. Headquartered in London, CFC serves more than 100,000 businesses in over 80 countries.
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