Pen Underwriting launches new intellectual property cover

A new intellectual property (IP) cover has been launched by Pen Underwriting, backed by Tokio Marine Kiln (TMK). Pen said the new IP cover is aimed initially at UK businesses, with plans in place for international rollout.

According to Pen, the new product brings additional underwriting expertise and broker choice to a limited market where risks and exposure are increasing. The insurer said the proposition’s modular basis can cater for all sizes of business and most industry sectors, from start-ups and SMEs to large or complex companies.

Erik Alsegard, head of intellectual property at Pen Underwriting, said: “With the demand for IP insurance expected to grow strongly due to the corresponding rise in the value of intangible business assets, brokers are looking for more choice in a limited market, which we are excited to provide. Combining the expertise of specialist underwriters at Pen who really understand this area of risk and exposure for their clients, with the backing of a carrier like TMK who is equally experienced in IP insurance, provides a powerful new proposition.”

He added: “Typically, mention of intellectual property rights conjures up images of life sciences or technology firms, innovators and inventors pushing at the very boundaries of what’s possible. But the fact is that every company, large and small, carries risk arising from intellectual property, whether they are aware of their exposure or not. So our message to brokers is: make sure you arrange cover for your clients’ IP and give them the means to defend themselves in the event of an infringement claim. Losing the right to IP, or to selling products or services due to an IP dispute, can have a devastating effect on a business.”

Pen explained that its modular proposition is focused on quick, simple proposal forms, fast decisions on whether Pen can assist, easy-to-understand policy wordings, and ease of trade. It can be tailored to specific IP risks or typical exposures and include cover for:

• Infringement liability;
• Contract breach allegations;
• Contractual obligations to indemnify for IP claims;
• Challenges to the insured’s IP rights;
• Enforcement of the insured’s IP rights against infringers.

Ellie Webb, IP underwriter at TMK, said: “We are very pleased to partner with Pen and help bring its easy-to-access, modular IP insurance proposition to market. It’s important to continue to grow the market in step with anticipated demand to help protect organisations from the substantial financial risks involved with IP-related disputes.”