Aon has announced the introduction of a new Intellectual Property insurance solution, bolstering its current suite of integrated IP capabilities one month after acquiring IP firm 601West.
“Considering the current environment, the importance of managing the value creation opportunity afforded by IP and the downside risk mitigation of IP has never been higher,” stated Lewis Lee, Chief Executive Officer (CEO) of IP Solutions at Aon.
The new solution is designed to protect companies from expensive IP litigation by leveraging patent litigation analytics, predictive modelling techniques and “innovative distribution strategies”.
Aon feels that with nearly 85% 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.
Aon is to offer a primary limit of indemnity of up to $100 million per policy, coverage options for third-party infringement defense, including certain litigation costs, damages and loss mitigation, and data-driven risk assessment, placement efficiency, adequate capacity, process simplification and pre/post incident response support.
Additionally, policies are to be placed on an annual, claims-made basis that can include coverage for contractual indemnities, with coverage options for third-party infringement defence, including certain litigation costs, damages and loss mitigation.
“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,” added Lee.
“Infringement suits brought by a competitor can result in significant losses or even jeopardize the future existence of a company. 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.”
