Liberty Mutual Insurance’s unit Liberty Specialty Markets (LSM) has launched a new intellectual property (IP) cover.
The product intends to avoid contract negotiations between businesses stalling due to concerns associated to IP.
LSM’s intellectual property contractual liability insurance policy had been designed to provide a solution for IPindemnification issues that could otherwise delay or end a potential contract.
The product, which is based on the company’s existing IP insurance, has been streamlined to accelerate application and underwriting process.
It covers in- licensing and out- licensing, both the sale and purchase of the right to use a product or service. The insurance will be underwritten by the company’s London team and will be available globally.
The product will provide for legal fees, expenses and damages incurred during defending legal proceedings related to the IP infringement.
It may also include an IT business licensing which includes IT business licensing the rights to use a piece of technology, but then getting sued by third party which claims that the use of the technology infringes its intellectual property rights.
LSM underwriter Camilla Walker said: “This product is relevant to any contract in which intellectual property is addressed, across a wide variety of sectors including engineering, technology, packaging and software development.
“Effectively, it indemnifies a business against IP-related disputes that could arise based on products or services provided under a contract or licensing agreement. The requirement to provide this indemnification within contracts is something we’re seeing much more frequently.
Walker stated that the product was developed to provide specific, lower cost coverage with a quick application process.
She said: “The coverage acts as a business enabler, giving clients the opportunity to enter into revenue generating deals they otherwise would not have been able to, or to negotiate better terms and conditions within contracts through settling the issue of IPindemnification in this manner.”
Image: LSM Underwriter Camilla Walker. Photo: Courtesy of Liberty Specialty Markets.