$1 billion. Amount of damages covered under patent infringement insurance. “Damages of up to $1 billion are covered under [patent infringement insurance], while $20-30 million are common.” (M. Qaiser, and P. Mohan Chandran, “Patent Insurance: Teflon Coating on Armour?,” iPrex Intellectual Property Solutions, December 30, 2005)
$15 million patent infringement insurance coverage limit. “Insurance limits up to $15 million coverage per patent are available. Deductibles start around $50,000-$100,000 and include a co-insurance percentage after the deductible. The co-payment can vary from 15% to 25%. Defense expenses such as legal fees, declaratory statements, injunctions, and appeals are usually covered by the policies. The insurance coverage premiums for a $1 million patent starts at $25,000. The factors that determine the premium rates are the past records of the firm, the care taken in patent research to prevent infringement and the firm’s own research and development work.” Patent insurance coverage limits. (M. Qaiser, and P. Mohan Chandran, “Patent Insurance: Teflon Coating on Armour?,” iPrex Intellectual Property Solutions, December 30, 2005)
$5 million. Patent insurance policy limits coverage offered by Intellectual Property Insurance Services Corp. “Intellectual Property Insurance Services Corp. (IPISC) announced today that it now has policy limits available up to $5 million per claim and in the aggregate. This is an increase from available limits of $3 million. With new limits of $5 million, IPISC is now more able to provide value to larger companies.” Patent insurance companies and rates. (Intellectual Property Insurance Services Corp. (IPISC) press release, “Intellectual Property Insurance Services to Offer Increased Policy Limits,” March 28, 2007)
$2 million to $10 million patent infringement insurance limits. “The few insurers willing to write patent infringement coverage generally offer limits in the range of $2 to $10 million.” Patent insurance coverage limit. Why don't businesses buy patent insurance? (Gloria Gonzalez, “BlackBerry litigation sends message about lack of patent cover,” Business Insurance, January 16, 2006) See which Blackberry models are the current bestsellers.
$500,000 in annual premiums for coverage limits of up to $15 million in damages. “More comprehensive policies offer coverage limits up to $15 million in damages, prejudgment interest and costs of defense. The annual premiums for a $15 million policy may cost $500,000.” (William N. Hulsey III, Hulsey Intellectual Property Lawyers, “Patent insurance can guard intellectual capital,” Austin Business Journal, June 12, 1998)
$25,000 per patent for $1 million of coverage. Patent infringement premiums start at $25,000 per patent for $1,000,000 coverage. Source: Nancy P. James, principal of N.P. James Insurance Agency, Concord, MA www.npjames.com/intellectualprop.htm.
$25,000 for $1 million in offensive patent insurance policy coverage. “Some companies offer an offensive patent insurance policy which is underwritten by a major insurer and made available to a local insurance retail agent. Under the policy, the underwriter may provide, for example, $1 million in offensive coverage for legal bills with a 20 percent copayment. The cost is $25,000 for various patents your company may hold involving the same product or process. For a higher price, your company may also obtain coverage even after discovering another is infringing its patents.” (William N. Hulsey III, Hulsey Intellectual Property Lawyers, “Patent insurance can guard intellectual capital,” Austin Business Journal, June 12, 1998)
$25,000 for a patent valuation. “The underwriter minimizes the offensive coverage risk by first carefully screening the patents offered for enforcement and extends coverage only to those patents deemed both legally valid and valuable. This analysis of patent valuation and risk factors will cost you $25,000. The analysis provides the underwriter with necessary information for effectively underwriting the policies, while also providing you with substantial knowledge about the patents and their economic viability in the marketplace.” Patent lawyers. Patent valuation. (William N. Hulsey III, Hulsey Intellectual Property Lawyers, “Patent insurance can guard intellectual capital,” Austin Business Journal, June 12, 1998)
$20,000 to $50,000 for each $1 million in defensive patent insurance coverage. “A larger number of insurance companies also offer the defensive patent insurance policies covering both damages and defense costs within predetermined limits. Some less expensive policies cover only legal costs, but not damages. Premiums run between $20,000 to $50,000 for each $1 million in coverage. Copayments for these may range from 15 percent to 25 percent.” Patent litigation insurance cost range. (William N. Hulsey III, Hulsey Intellectual Property Lawyers, “Patent insurance can guard intellectual capital,” Austin Business Journal, June 12, 1998)
$7500 to $10,600. Amount HLPM Insurance of Louisville, Kentucky charged in 1989 over three years for $100,000 to $1 million patent insurance coverage. “[Mark Hankins, assistant chief counsel for innovation at the Small Business Administration's advocacy office] said some insurance companies are beginning to carry policies to protect a patent from legal challenges. HLPM Insurance Services of Louisville, Ky., for example, charges from $7,500 to 10,600 over three years for such protection, with coverage ranging from $100,000 to $1 million. The company pays a patent attorney to defend its customers and receives a percentage of any damages won. Other than insurance firms and the few lawyers who will take patent cases on a contingency basis, there is little low-cost legal help available.” (Jennifer Caspar, “The Relentless Task Of Patent Protection; Entrepreneurs Face High-Cost Challenges,” The Washington Post, December 11, 1989)
2 to 5% of the insured amount. “Premiums for patent insurance depend on the patent and/or the product being protected. They usually range between 2-5% of the insured amount.” Patent insurance cost range. (M. Qaiser, and P. Mohan Chandran, “Patent Insurance: Teflon Coating on Armour?,” iPrex Intellectual Property Solutions, December 30, 2005)
