The Multi-Peril Intellectual Property Reimbursement (MPIP) policy (which can be an add-on to another policy as a rider) provides first party coverage for loss of value because of adverse intellectual property (IP) events such as Business Interruption, Loss of Commercial Advantage and the Cost of Redesign, Remediation & Reparations. These adverse happenings are in the form of legal actions by or against IP owners and/or third parties.
$50K (USD) per Claim/Aggregate or 10% of Policy limits, whichever is less, is automatically included as a Rider to the standard IP Abatement or Defense Insurance Policy. For an additional premium, limits in excess of $50K are available up to $1M; higher limits may also be available for an additional premium.
This rider responds after the final adjudication of a civil proceeding that directly caused or established the loss of value.
The customer base is IP holders or third party beneficiaries who are likely to purchase the enforcement product; or on the defense side, IP holders or third party beneficiaries, any manufacturer or entity in the chain of commerce which is subject to being sued for IP violations.Features & Benefits
Covered Interruptions include: Loss of Commercial Advantage; Business Interruption; and Cost of Redesign, Remediation and Reparation.
Two occurring events trigger this Insurance Rider, (1) a Civil Proceeding must be initiated which seeks a result covered by the Policy; (2) there must be an Adverse Happening, which results in the Named Insured suffering a Loss/Cost or loss of Business Income. If the Civil Proceeding is settled, the second condition has not been met, and the Policy does not apply.
Two occurring events trigger this Insurance Rider.
1) The Named Insured may access the Policy by triggering one or more Adverse Happenings caused by the Loss/Cost consequence of legal actions by or against the Named Insureds and/or third parties.
2) Upon compliance with the policy terms, the Company will report its decision on reimbursement of the Claim(s) in writing to the Named Insured as soon as practicable, after receipt of all material required.
The Policy Holder controls the lawsuit; however, the Company may suggest reliable and preferred counsel to the Insured but the Insured ultimately chooses. Counsel must adhere to litigation and billing guidelines set forth by the Company to ensure the full value of the policy. The Insured dictates the settlement terms, if any.