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New Zealand-owned specialist liability provider Delta Insurance has released a new product that offers to protect Kiwi businesses against intellectual property (IP) risks.
The insurer said its new IP cover is a first in New Zealand. It is designed to make it easy for Kiwi companies to cover their legal costs in a battle over “intangible” assets.
“Elements of IP coverage exist across some current policies, but no single insurance policy in New Zealand has adequately covered intellectual property to date,” Delta Insurance senior underwriter Avani Vyas said. “Until now, this lack of simple, affordable IP cover has made it difficult for Kiwi companies to deal with infringement and enforcement-related issues.”
Delta detailed the case of software company Zeacom, which was stung by patent trolls twice. At first, it opted to pay a $350,000 settlement instead of forking out millions to fight the baseless allegations. The second time, the company settled for an undisclosed amount.
“Having an insurance policy that covers legal expenses allows businesses to swiftly respond to these kinds of difficult situations,” said Delta Insurance general manager Craig Kirk.
“An IP policy helps you unlock the potential of your IP while you commercialise your ideas with confidence, and will reassure investors and other stakeholders that your business is well equipped to face infringement disputes.”
