IPISC Calls Attention to the Intellectual Property Blind Spot in Commercial Insurance Reviews

New USPTO findings give brokers and businesses a timely reason to examine how they would fund an intellectual property dispute. LOUISVILLE, Ky., October 6, 2026. Intellectual Property Insurance Services Corporation (IPISC) is encouraging insurance brokers and businesses to give intellectual property litigation exposure a defined place in commercial insurance reviews. The United States Patent and Trademark Office recently released a report titled Intellectual Property and the U.S. Economy in 2024. It found that 128 industries identified as intensive users of patents, trademarks or copyrights accounted for $11.4 trillion, or 44 percent, of private sector gross domestic product in 2024. These industries directly employed approximately 49.6 million people. For IPISC, the findings raise a practical question for a commercial coverage review: How would the client pay to defend an intellectual property claim or enforce the rights it owns? Commercial insurance discussions often address property, general liability, cyber, professional liability, and management liability. The costs connected to an intellectual property dispute may not receive a separate review. Intellectual Property Risk Can Move in Either Direction A business does not need to own a patent to be accused of infringement. A company that makes, uses, sells, offers for sale or imports a product or service may face a patent claim. A business can also face allegations involving a name, marketing material, software, or confidential information. Contractual obligations to defend or indemnify a customer or business partner can add another exposure. IP Defense Insurance is designed to help an insured respond to unexpected lawsuits alleging infringement of another party’s intellectual property rights. Depending on the policy, covered costs can include attorney fees, court costs, settlements and damages. A company can also own valuable intellectual property and wish to plan for the financial resources if they needed to fully pursue an alleged infringer. IP Enforcement Insurance helps fund litigation to assert covered rights and respond to challenges involving the validity of those rights. In either direction, litigation expenses can place pressure on operating funds and affect a company’s ability to remain in the dispute long enough to obtain a resolution on the merits. Why Standard Policies Need a Closer Review Standard commercial policies serve important purposes, but they should not be assumed to provide complete protection, especially for intellectual property disputes. A commercial general liability policy may respond to certain IP offenses within personal and advertising injury. Other forms may offer limited coverage tied to specific professional, media, or online activities. The policy wording, allegations and facts determine whether coverage applies. Chuck Baxter, Executive Vice President and General Counsel at IPISC, described the issue in his January 2025 IRMI article, Defense Insurance for Intellectual Property Risks: “Finding coverage for an IP dispute in general insurance policies can feel like fitting a square peg in a round hole.” Baxter’s article explains that general policy forms often limit or exclude many intellectual property conflicts. A focused review can identify where existing policies may respond and whether specialized coverage should be considered. Questions to Add to the Insurance Review A broker does not need to become an intellectual property attorney to begin the discussion. The following questions can help determine whether a closer review is warranted: Which products or services generate a meaningful share of the client’s revenue? Does the client own or use patents, trademarks, copyrights or trade secrets connected to those offerings? Could the client’s products, technology or marketing be accused of infringing another party’s rights? Do customers, suppliers or licensing agreements create intellectual property defense or indemnification obligations? What current policies could respond, and what limitations or exclusions apply? Could the client absorb the legal costs and business disruption associated with a dispute? Review Exposure Before a Dispute Timing matters because insurance for intellectual property and most other risks addresses future, uncertain events. A known allegation, threat or preexisting circumstance may affect the availability or terms of coverage. The discussion can be useful before a product launch, a significant contract, a market expansion, or an annual renewal. Reviewing the exposure early gives the broker and client time to consider available options before a cease-and-desist letter, licensing demand or lawsuit arises. IPISC works with insurance professionals and their clients to identify potential Defense and Enforcement exposures and evaluate available coverage options. The application process also helps document the products, services, contracts, and intellectual property rights connected to the risk. To learn more about intellectual property insurance, visit IPISC.com or request a preliminary premium estimate. About IPISC Founded in 1990 and headquartered in Louisville, Kentucky, Intellectual Property Insurance Services Corporation is a managing general agent and underwriter specializing in intellectual property insurance and litigation risk management. IPISC partners with insurance brokers, agents, and clients to address the financial risks associated with defending against allegations of intellectual property infringement and pursuing parties accused of infringing an insured’s intellectual property rights. IPISC’s team includes insurance professionals and registered patent attorneys with experience involving patents, trademarks, copyrights, and trade secrets. Its services include Early Intervention and Litigation Management. Coverage is subject to underwriting and all terms, conditions, limitations and exclusions of the applicable policy. This release provides general information and does not provide legal or coverage advice. Media Contact: Alex Eveslage aeveslage@patentinsurance.com | 502-855-5336 Intellectual Property Insurance Services Corporation info@ipisc.com | 502 491 1144 ipisc.com Topics Commercial Lines Business Insurance Property