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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.

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