This article is the second of two parts, please see part 1 here.

Intellectual property (IP) insurance is essential for businesses seeking to protect their valuable IP assets. It offers several benefits, including:

Financial protection

IP litigation can be extremely expensive, with legal fees and potential damages amounting to millions of pounds. IP insurance provides financial protection against these costs, helping businesses to mitigate the financial risks associated with IP disputes.

Legal defence

IP insurance policies often cover the cost of legal defence in cases of alleged infringement. This ensures that businesses have access to expert legal representation without having to bear the burden of the expenses themselves.

Enforcement of IP rights

In cases where a business’s IP rights are infringed upon, IP insurance can help cover the costs associated with enforcing those rights, such as pursuing litigation against the infringer. This can be vital in protecting a company’s market position and maintaining its competitive advantage.

Strengthening negotiation position

Having IP insurance can strengthen a company’s negotiation position when dealing with potential infringers. The insurance coverage can act as a deterrent and encourage infringers to settle disputes more amicably or avoid infringement altogether.

Business continuity

IP disputes can be time-consuming and disruptive to a business’s operations. IP insurance helps maintain business continuity by providing financial support and resources needed to manage disputes while allowing the company to focus on its core business activities.

Customised coverage

IP insurance policies can be tailored to suit the specific needs and requirements of a business, ensuring that coverage is both relevant and adequate for the IP assets in question.

Enhanced credibility

Having IP insurance demonstrates to investors, partners, and customers that a company takes its IP protection seriously. This can enhance the company’s credibility and reputation in the market, helping to attract investment and foster trust among stakeholders.

Risk management

IP insurance is essential to a comprehensive risk management strategy. By mitigating the financial risks associated with IP disputes, businesses can better manage their overall exposure and focus on growth and innovation.


Matthew Yeates is an energetic leader, helping companies and investors unlock their competitive advantage by identifying, valuing and monetising intangible assets. Matthew has been ranked as one of the top intellectual property (IP) strategists by IAM 300 – ‘World’s Leading IP Strategists’.