Do I need patent litigation insurance, and what does it cover?

What might specialty insurance cover?

CFC's published intellectual-property product description is one example offering infringement-defense and rights-enforcement coverage. That product description is not your policy and does not show that a general liability, cyber, or directors-and-officers policy covers your dispute.

What documents should I obtain?

Collect the complete policy, schedule, endorsements, application, renewal documents, and any broker correspondence. Ask the insurer or broker to identify the clauses addressing patent claims, defense costs, damages, deductibles, limits, exclusions, and proceedings outside district court. Request a written coverage position for the actual demand or complaint.

What needs attention before spending or settling?

Have counsel review any notice deadline, choice-of-counsel condition, consent requirement, and allocation of defense costs. Confirm the treatment of expenses already incurred. Do not assume that notifying a broker, obtaining a quote, or receiving a product brochure establishes coverage.

Should I buy a new policy after a demand?

Ask the proposed insurer directly how the known dispute affects eligibility and exclusions. Compare the offered terms with the business's risks and budget. A new policy should not be treated as funding for an existing dispute unless its written terms support that conclusion.