How intellectual property insurance can give peace of mind to small business owners
If you’ve poured your heart and soul into a piece of work, you probably have a strong sense of pride in it. That’s why it can be especially devastating when a competitor infringes on it or a criminal steals it.
On top of this, theft of intellectual property can have significant financial implications for small businesses. According to government figures, this crime costs the UK economy more than £9 billion each year.
If you own a small business and want to protect yourself against this risk, taking out protection can be invaluable. Here’s how intellectual property insurance can give you greater peace of mind.
Intellectual property insurance can help to safeguard your hard work from competitors
Intellectual property comes in a wide variety of forms in the creative sector, whether it’s a piece of art, a new invention, or even just a symbol or name used in commerce. Whatever you choose to create, you probably know how important it is to protect it, such as with a patent or copyright, so you get the proper recognition you deserve.
In the highly competitive modern economy, intellectual property can be invaluable for helping your business to grow and expand your market niche. This is why it’s so important to seek proper protection, to keep your ideas safe from criminals and competitors alike.
There are two main types of intellectual property insurance that could benefit you. These are:
Abatement enforcement coverage
If you find out that another party is infringing on your intellectual property, you may have to fight a lengthy court battle to sort it out. This cover will give you the financial resources you need to enforce your rights.
Infringement defence
If you unintentionally infringe on someone’s copyright, you may incur substantial legal fees. This protection will help to cover those costs while you defend yourself.
Of course, while infringement by a third party is one of the most obvious risks, it is by no means the only one. Some of the other issues you could encounter include:
- Potential issues with open-source software
- Use by subcontractors
- Involvement in open innovation initiatives.
If you don’t have cover in place, you could run into a variety of potential legal issues, which could cost you a significant amount of money and cause you unnecessary stress.
Not having proper protection could put your business at significant risk
As we touched upon in a previous article, the coronavirus pandemic accelerated the digitalisation of the UK economy. One side-effect is that many businesses now have to compete in the global marketplace.
Of course, while this has many benefits, it can also leave companies more exposed to the risk of intellectual property theft. Furthermore, in recent years, the financial costs of the lawsuits to settle these disputes have risen significantly.
According to the International Risk Management Institute, not only is the cost of intellectual property litigation “astronomical” but it continues to rise each year. They also warn that in some cases, if a business is unprepared, then the costs of a lawsuit could “pose a very real threat” to its continued operation.
This is where protection can help you, as it will cover the costs of any potential legal proceedings that you may have to go through.
Working with a broker can help you find cover that suits your needs
When growing your business, there are many things that you have to think about, which is why concerns over potential lawsuits for intellectual property infringements are the last thing you need.
Whether you’re pursuing infringement of intellectual property or defending yourself against accusations, legal expenses could have a substantial impact on your business. With such high stakes, finding the right protection to suit your needs can be a necessity.
Putting comprehensive protection in place can help you if you run into any issues, as it will ensure that your business will be able to absorb the cost of any legal proceedings. Of course, if you want to ensure that you have cover that’s right for you, you could benefit from seeking professional advice.
When you work with a broker, they can assess your needs and scour the market on your behalf to find the protection that fully meets your needs, making the process faster and easier. This can help to give you greater peace of mind to know that whatever issues the future may hold, you’ll be able to overcome them and keep growing your business.
Get in touch
If you want to protect your intellectual property and find the right cover for your needs, we can help. Email creative@eggarforrester.com or use our contact form to request a callback from our team.
