Key Takeaways:

  • Copyright infringement insurance isn’t a shield against infringement itself. It primarily helps defray legal expenses if you’re sued for alleged copyright infringement.
  • This insurance typically covers legal defense costs like attorney fees and court fees. Coverage for damages awarded to the copyright holder if you lose the case is less common.
  • While the focus is on copyright, some policies might also extend to trademark infringement or trade secret misappropriation claims.
  • There’s no single “copyright infringement insurance.”

As a business owner, protecting your intellectual property (IP) is important. In today’s digital age, the risk of facing a claim of infringement is higher than ever.

To safeguard your business from potential legal expenses and advertising-related injuries, copyright infringement insurance is essential. This specialised insurance coverage, offered by insurance companies, helps mitigate the financial risks associated with copyright disputes.

By paying insurance premiums, business owners can ensure they have the necessary support and resources to defend against copyright infringement claims, thereby safeguarding their valuable intellectual property assets.

What is Copyright Infringement Insurance?

This specialised insurance helps creators, businesses, and organisations manage the financial risks of copyright infringement lawsuits. In today’s digital world, unauthorised copying is common, and legal disputes can be expensive.

This insurance typically covers legal defense fees, such as attorney costs, and may also cover settlement costs. However, it’s important to understand that coverage for damages awarded by the court is less common. Be sure to read your policy carefully to understand the specific coverage details.

While copyright infringement insurance won’t prevent infringement itself, it can provide peace of mind by helping you defend your rights if a lawsuit arises. This allows you to focus on your creative work or business without the constant worry about potential litigation.

Types 

copyright infringement insurance policy

Copyright infringement insurance isn’t a specific type of policy itself, but rather coverage offered under some existing business insurance policies.

There are two main types that might provide copyright breach protection:

  • Commercial General Liability (CGL): This common business insurance can cover inadvertent copyright violation, specifically when it arises from “advertising injury.” This means if your business uses copyrighted material unknowingly in marketing or promotion, the CGL policy might help with legal fees and other costs. However, it typically won’t cover intentional infringement.
  • Professional Liability or Errors and Omissions Insurance (E&O): This insurance is more specific to certain professions, such as architects, engineers, or consultants. It can cover legal costs associated with defending a copyright infringement claim related to your professional services. For instance, a media company might have E&O coverage for copyright violation lawsuits stemming from its content.
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What are the Different Types of IP Protection Insurance?

There are two types of IP protection insurance, each affecting how coverage works:

  1. Infringement Defense: This type helps cover your business’ costs if it gets sued for intellectual property infringement.
  2. Abatement Enforcement Coverage: This coverage helps pay the costs for your business to pursue legal action against another person or business using your IP.

Copyright Infringement Coverage Benefits

Copyright infringement lawsuits can be expensive. Specialised intellectual property (IP) liability insurance or coverage within broader policies like CGL can offer several benefits:

  • Legal Defense Coverage: This helps pay for attorney fees, court costs, and other expenses associated with defending a copyright breach lawsuit.
  • Financial Security: Insurance can help offset some of the financial burden of a lawsuit, including potential damages awarded by the court (coverage for damages may vary).
  • Reputation Management: Having IP protection demonstrates a commitment to respecting intellectual property, which can enhance your reputation.
  • Risk Mitigation: The insurance process can encourage you to identify and address potential copyright vulnerabilities in your creative works.
  • Peace of Mind: Knowing you have some financial and legal protection in case of a claim can provide peace of mind.

What’s Next?

While copyright infringement insurance offers a safety net, it’s important to remember it’s not a cure-all.

It typically doesn’t cover trademark infringement, personal injuries, or deliberate copyright violations. However, for many businesses, intellectual property infringement insurance, as a special type of liability insurance policy, offers valuable protection against the financial burdens of copyright infringement lawsuits.

Consider the cost of peace of mind – intellectual property insurance costs can be a wise investment for the security it provides.

Don’t wait for a lawsuit to take action. For comprehensive copyright protection beyond insurance, explore Bytescare’s digital protection services. We offer a range of tools to safeguard your copyright from infringement. Book a demo today and see how Bytescare can empower you to create with confidence.


FAQs

What is copyright infringement insurance?

Copyright infringement insurance is a type of insurance that provides coverage for legal defence and financial damages related to copyright infringement claims.

What does copyright infringement insurance cover?

Copyright infringement insurance covers legal defence costs, settlement fees, and damages awarded by a court related to copyright infringement claims.

How much does copyright infringement insurance cost?

The copyright violation cost will depend on the different criteria. The criteria include the type and coverage’s amount.
It also involves the objective of the business and the risk level.

How do I apply for copyright infringement insurance?

You can apply for copyright infringement insurance through an insurance provider that specialises in intellectual property insurance.

You’ll typically need to provide information about your creative works and business, as well as any past infringement claims.

Can copyright infringement insurance prevent infringement claims?

While copyright infringement insurance can’t prevent infringement claims, it can help you mitigate potential risks and provide financial and legal protection in the event of a claim.

What General liability insurance provides coverage?

This insurance provides coverage for:

a. Third-party bodily injury
b. Third-party property damage
c. Product liability
d. Advertising injuries
The advertising injuries clause in your business general liability insurance will protect you from a copyright infringement lawsuit if you have it. This includes coverage for copyright infringement, defamation, including libel and slander, misappropriation of advertising ideas and invasion of privacy.