In April 2019, The Betterley Report published its Intellectual Property and Media Liability Insurance Market Survey – 2019. (Available in the TechAssure Resource Library) The report is sub-titled “A Stable Market Despite a Glaring Need for Protection.” The Report summarizes the product offerings for the limited number of underwriters in the product segments. This year Ambridge is honored to have our new IP policy included in the survey.
In the Report summary (page 9) the author asks the important question – “Why isn’t more IP insurance bought? Frankly, we are puzzled. Is it because…”
Limits available are not high enough to protect against catastrophic loss
Negotiating coverage is cumbersome
IP counsel does not think the coverage is necessary (or does not want to lose control over litigation)
Coverage isn’t necessary as IP rights are strong
Coverage is not well known
Per the bullet points below, and as you will see in our coverage highlights in the Report, Ambridge has worked hard to develop an IP product that addresses as many of these common sales objections as possible –
- Ambridge has the ability to provide limits of liability up to $79 million
- Ambridge has developed an efficient underwriting process
- Broker provides initial information regarding prospective client and/or product(s)
- Ambridge utilizes a streamlined application (and also quotes off of competitor versions)
- Non-binding indication normally provided within three business days
- Formal underwriting utilizing application, proprietary databases, legal analytics, information requests and client call typically completed within one-two weeks
- Ambridge IP policy form includes choice of counsel
Other highlights of the Ambridge product include
Covered IP includes patents, trademarks, copyrights and in limited cases trade secrets
Defensive coverage for claims brought by all third parties
Average rates between 1% and 3.5% of the limit purchased
Average retentions, depending on industry, range from $25,000 to $2 million
We generally do not charge an underwriting fee
Jurisdiction specific or worldwide coverage
Policies written on an annual, renewal basis
Additional information to keep in mind as you are speaking with your clients about their IP exposures -
What is driving the need for stand-alone IP Policies?
Since 2000, the annual number of US utility patents issued has more than doubled, climbing to over 315,000 in 2017
The PwC 2017 Patent Litigation Study reported that in 2016 the median patent damages award was $6.1 million
Other insurance products are not designed or underwritten to provide robust IP coverage
Currently 60% of tangible assets (such as property, plant, and equipment) are insured and only 12% of intangible assets (IP)
From 1836 to 1991, five million US patents were issued – in 2018, only 27 years later, the ten millionth patent was issued
Industries with the strongest interest in our IP policy
Software & IT services
Manufacturing & Industrial goods
Household and personal goods
Automobiles & parts
Agricultural products & machinery
Industries comprised of companies whose operating strategy includes licensing their IP to others and as a result owe an indemnity obligation to the licensee
The link to claim your free copy of the report is attached below – courtesy of Ambridge Partners you will only need to enter your name and email address to obtain a copy of The Betterley Report – 2019 IP and Media Edition
https://www.irmi.com/free-resources/authoritative-reports/betterley-report-ambridge-partners-llc