Aon Launches Insurance Solution for Intellectual Property Liability
Innovation-driven economy and litigious environment cause companies to face a persistent threat of IP litigation...
Aon plc has announced an insurance solution designed to meet the changing needs of clients’ intellectual property liability. This is the latest offering in Aon’s suite of integrated IP capabilities following the recent announcement of its newly formed IP Solutions group as well as the acquisition of IP firm 601West.
With nearly 85 percent of the value of the S&P 500 represented by intangible assets, a company’s IP, which includes patents, copyrights, trademarks, trade secrets and know how, can be some of its most valuable assets. While IP is critical to helping organizations innovate, differentiate and gain market share, the increasingly litigious environment that comes with it can create an extensive, cash-intensive burden for IP holders.
“Considering the current IP environment, the importance of managing the value creation opportunity afforded by IP and the downside risk mitigation of IP has never been higher,” said Lewis Lee, CEO of IP Solutions at Aon. “Historically, the limited data and analytics available to the underwriting community has meant higher retentions, deductibles and co-insurance requirements for potential policyholders, limiting the value insurance can bring to the world of IP.”
Utilizing patent litigation analytics, predictive modeling techniques and innovative distribution strategies, Aon has developed a client-focused, holistic approach to IP, which includes meaningful IP liability insurance capacity. This includes*:
- Primary limit of indemnity of up to $100M in capacity available per policy, subject to qualification;
- Policies placed on an annual, claims-made basis that can include coverage for contractual indemnities;
- Coverage options for third-party infringement defense, including certain litigation costs, damages and loss mitigation;
- Coverage that is underwritten with a comprehensive portfolio view of products/IP of the insured on a global exposure basis;
- Data-driven risk assessment, placement efficiency, adequate capacity, process simplification and pre- and post-incident response support.
“Infringement suits brought by a competitor can result in significant losses or even jeopardize the future existence of a company,” added Lee. “When not properly managed, the cost of patent litigation, regardless of whether your side wins, can be sizable. Building and protecting a valuable IP portfolio while minimizing IP risks will help a company attract and retain investors as well as strategically stay ahead of its competitors.”