intellectual property defense cost reimbursement insurance
Coverage that reimburses insureds for legal expenses incurred to defend against
lawsuits alleging that the insured has committed patent, trademark, or copyright
infringement. Since the purpose of the policy is to pay defense costs only,
there is no coverage for damages awarded against the insured if it is found
that the insured, in fact, infringed upon another's intellectual property. The
rationale for this approach is that such infringements are usually (although
not always) intentional and that it would be against public policy to provide
coverage for the insured's intentional acts. See also Intellectual property
infringement abatement insurance.
Links for IRMI Online Subscribers Only:
PLI XX.C