First ever trade secrets insurance policy launched by Chaucer and Crown Jewel

The first insurance policy to provide protection for US businesses’ trade secrets has been launched by Chaucer in partnership with US insurtech and Lloyd’s coverholder Crown Jewel. Chaucer will provide lead underwriting capacity and the programme will be brokered by Acrisure London wholesale.

The coverage includes the use of forensic and legal experts, and full trade secret asset risk management. According to Chaucer, should theft occur Crown Jewel will supply forensic and legal experts to determine how the theft occurred, gather evidence of any misappropriation of trade secrets, and pursue recovery of the asset, injunctive relief, or both.

Crown Jewel offers a full trade secret asset risk management product, called Crown Jewel Protector that, as part of the underwriting process, will identify, value, and offer recommendations on how to protect a company’s trade secrets. Under the insurance policy, should a loss of market share or income result from the misappropriation of an insured’s trade secret, the pre-agreed fair market value of the trade secret is payable.

Hayley Maynard, head of innovation at Chaucer, said: “Prior to the launch of this product there was no insurance available for businesses’ trade secrets, leaving the vast majority of their value unprotected. Crown Jewel Protector provides significant additional peace of mind for businesses that their most valuable assets are secure.”

Crown Jewel said that trade secrets make up a huge proportion of the value to most modern businesses – an estimated 90% of the value of the S&P500 is intellectual property, of which only 15% is protected by patents or trade marks. If trade secrets are made public or leaked to a competitor then a business can suffer a potentially huge loss in value.

Crown Jewel pointed to the threat of industrial espionage or disclosure by a disgruntled employee, as well as trade secrets being increasingly at risk of misappropriation through cyberattacks. Crown Jewel Protector helps secure a business’ trade secrets, which can prevent or minimise the loss and reduce the likelihood of protracted litigation, it said.

Crown Jewel’s CEO and founder Mary Guzman has been a leading player in the insurance industry for 30 years. She said: “The launch of this product is the result of a multi-year passion project that should allow for a trade secret protection ecosystem to develop, including not only insurance protection for a company’s most unique know-how, but the monetisation of those assets that will allow lenders and investors to support and fund innovation with a backstop that was not available until now.”

She added: “Chaucer’s deep expertise in the market will be a valuable resource for Crown Jewel as we launch this ground-breaking solution.”

Zak Mallen, US reinsurance underwriter at Chaucer, said: “Chaucer is delighted to partner with Crown Jewel in this insurance industry first. Crown Jewel Protector fills a real gap in the market that we are confident will be highly sought after by listed companies and mid-market enterprises alike. This will be a huge benefit for all businesses, but for those who would not be able to afford litigation should their trade secrets be misappropriated it has the potential to be transformational.”