Do I need intellectual property insurance for my tech business?


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In today's fiercely competitive business landscape, the value of intellectual property (IP) cannot be overstated. For tech businesses, whose success hinges on innovation and originality, safeguarding their unique ideas and creations is not just prudent but imperative. 

Intellectual property insurance emerges as a vital shield, offering both legal protection and financial security in the face of risks. In this article, we look at the significance of IP insurance, shedding light on what it is and why it should be a cornerstone of every tech business's risk management strategy.

Understanding intellectual property

At the core of intellectual property lies a diverse array of assets, each requiring distinct forms of protection.



Design rights

Trade secrets

These safeguard fresh, inventive ideas, granting exclusive rights to their creators to prevent others from exploiting, replicating, or profiting from their inventions.


Protecting artistic works ranging from literature and music to software code, copyright ensures creators have sole authority over the distribution and usage of their creations.

Concerned with the aesthetic appeal and visual aspects of objects, design rights shield against unauthorised replication of unique product designs.

Often comprising confidential information crucial to a company's competitive edge, trade secrets encompass proprietary knowledge, manufacturing techniques, and undisclosed ingredients.


For businesses, particularly those rapidly scaling in the tech sector, the need for IP insurance becomes imperative. Whether grappling with allegations of infringement from competitors or defending against threats to proprietary innovations, IP insurance provides a robust safety net, ensuring that the fruits of your labour are shielded from both legal challenges and financial setbacks.

What can IP insurance do?

Intellectual property insurance encompasses a range of protection tailored to the risks associated with innovation-driven industries: 

•    Defence – to cover legal expenses, settlements, and damages arising from third-party infringement claims. This aspect of the policy provides vital financial support in navigating legal disputes.
•    Contractual indemnity – to address exposures stemming from contractual obligations, particularly with customers or licensees. This facet ensures comprehensive coverage across the supply chain.
•    IP validity cover – this is crucial for defending against attempts to invalidate IP rights. This coverage helps businesses mount robust defences against challenges to their intellectual assets.
•    IP ownership cover – to assist in resolving disputes regarding ownership rights. This component mitigates the financial impact of legal battles over the rightful ownership of intellectual property.
•    Pursuit of infringers – to enable businesses to assert their IP rights through legal action against alleged infringers. This coverage safeguards against unauthorised use and exploitation of proprietary innovations.
•    Loss of IP rights – to mitigate the financial repercussions of invalidated IP rights. This covers expenses related to the registration and maintenance of intellectual property in the event of covered infringement claims.

How can Howden help?

We have access to a range of insurance markets to tailor the coverage you require. Whether you’re an established business or a budding start-up seeking cost-effective options, we’ll engage with the right insurers to implement the necessary coverage to protect your vision. What’s more, you can count on us to assist you as your business evolves. We’ll be there from its inception to seed stage and beyond, so you can focus on the things that matter most. 

In the fast-paced world of technology, where innovation is the lifeblood of success, protecting intellectual property isn't just a legal formality - it's a must have. Intellectual property insurance offers a comprehensive solution, safeguarding against the variety of risks that threaten to undermine the value of your creations. 

As tech businesses, like you, continue to push the boundaries of innovation, investing in robust IP insurance isn't just a sensible choice - it's a crucial step towards ensuring long-term resilience in an ever-evolving landscape.

Contact us today to find out more about what Howden can do for your business.

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