Intellectual Property Insurance Coverage: Seven Tips That Every Purchaser Of Defensive IP Coverage Should Know

Intellectual property (IP) insurance coverage is having a moment. The post-pandemic economic recovery has been driven to a large extent by technology startups.¹ For a new tech company, strong IP can provide both a competitive and fundraising advantage. Without the ability to protect that IP, the advantage is limited. Effective and appropriate insurance coverage, however, can both preserve the company's intellectual property and provide its own basis for corporate exceptionalism and exclusivity.

Not all intellectual property is created equal. Neither is IP coverage. Intellectual property insurance coverage policies are manuscripted, meaning the coverage is not written on uniform state-approved forms, but with unique terms and provisions that may vary from policy to policy. Intellectual property coverage may be (1) defensive; (2) offensive; (3) contingent; or (4) some variant of these three. At a very basic level, defensive IP coverage will defend and indemnify the