May 24, 2023

Small Business Intellectual Property Insurance

Intellectual property touches on intangible creations based on human intellect. These intangible assets include business identity, innovation, trade secrets, slogans, logos, authorship, and other practical expressions of ideas that drive your business. Unfortunately, small business people face numerous risks and threats to their intellectual properties. For instance, intellectual property theft can lead to loss of sales, shrunk business growth, and loss of competitive advantage. Risks associated with intellectual property can drive a small business to closure, highlighting the need to insure it against associated risks. Consider speaking to a trusted insurance professional about your options to shield your business against unforeseen risks.

What Does Small Business Intellectual Property Insurance Cover?

Third-Party Infringement Claims For Copyright, Patent, & Trademark Infringement

If third-party files a court case related to intellectual property infringement, intellectual property insurance steps in to cover related costs. Costs related to such lawsuits include attorney fees, judgment, settlement, and defense costs. If you don’t have small business intellectual property insurance, you’ll be forced to pay the expense from your cash reserves. Interestingly, the settlement and legal costs can cost thousands of dollars, disrupting small businesses’ stability.

Coverage to Pursue Competitors and Other Malicious Invaders

You may need court intervention if you’re looking to pursue a competitor or any other non-practicing entity. Remember, the judicial process is time-consuming, complex, and expensive. You’ll therefore need an attorney to represent you in court during evidence tabling, trial, appeals, and any other technical issue. More importantly, you’ll need funds to cover legal fees, court fees, and defense costs. To that end, small business intellectual property insurance provides the funds required to pursue the claim in court.

Coverage of Post Incident Response Costs

After an incident on your intellectual property, you must implement measures to prevent future attacks. For instance, part of recovery efforts involves investigating what could have led to the incident. Intellectual property insurance covers the cost involved in developing plans to prevent future infringement of intellectual property.

Benefits of Small Business Intellectual Property Insurance

Here’s how acquiring intellectual property insurance from a trusted insurance agency can add value to your business;

It protects the financial position of your business
It gives you leverage in court cases and other business negotiations
It adds value to your intellectual properties
It reassures stakeholders such as lenders or investors that their interest in the business is properly safeguarded.

Let Us Protect Your Business Against Intellectual Property Theft

Intellectual property is an underrated risk that can expose the underbelly of a small business. Once someone gains access to your trade secrets, they can imitate your products. As a result, you may suffer a shrinking market share, poor brand reputation, and a lost livelihood. To that end, consider buying small business intellectual property insurance to protect it from external attacks. At Panorama Insurance Agency, we’ve been insuring businesses near Northridge California since 1973, giving us an edge to protect your livelihood or investment. Contact us online or call us at 818.579.9663 to request a quote.

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