Protect your patent with patent insurance

Before introducing patent insurance, let us first understand what a patent is- it is an exclusive right granted by the government to make, use or sell the patented products. In other words, no one other than the patent-holder can manufacture or market the patented products. Going by the definition, one might think a patent itself provides some sort of insurance but what then, is a patent insurance? Patent insurance is a protection against infringement of patents and the costs associated with it.

In these days of internet business and e-commerce, companies come up with new ideas, processes and applications. It is important to patent them and ensure that the copyright of these ideas are not infringed and at the same time make sure that one has not copied the ideas of others. If such situations arise then patent insurance can come to the rescue.

Patent insurance is of two types:

·         Patent liability insurance

·         Patent pursuance insurance

Patent Liability Insurance is a defensive instrument, which helps the insured fight an infringement lawsuit filed by a rival company.  Another term for it is ‘patent infringement defense insurance’ where the insurance company bears a part of the legal expenses incurred and/or the damages to be paid.

Patent Pursuance Insurance, is an offensive instrument which helps the insured fight against a patent infringing company. The other terms for this are ‘patent enforcement insurance’ or ‘offensive patent insurance’, in this case the insurer pays a part of the legal expenses incurred by the insured company. In simpler terms defensive policies covers a company if it is sued for violating a patent and offensive policies help a company to pay for legal expenses and other costs if it sues another party for violating a patent.

Another advantage of patent insurance products are a company can prevent a larger and financially strong company from infringing on its patents or will be in a position to sue a smaller, emerging company by being armed with a stronger litigation position.

Defensive patent insurance policies also help companies reduce the pressure to settle litigations owing to rising legal expenses in relation to lengthy patent litigations. On the other hand offensive patent litigations may attract investors to the company owing to the insured patents it has.

Getting a patent insurance can be a strategic move to avoid losses from patent infringement.

To know more about getting the right insurance policy based on your needs  and an unbiased opinion on the best options please visit www.zeninsure.com or call us on +91 9848884363

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Run off insurance

Run-off insurance is a type of insurance that protects against future loss.  A  run off  insurance is required because under a  "claims made" basis, insurance does not cover a business after the policy expires,  this puts the business in a precarious position if  claims are  made after the expiration date of the policy.

This type of insurance is required  because professional indemnity insurance is provided on a ‘claims made’ basis which means that it is the policy in place at the time that you become aware of the claim that provides the cover and not the policy that was in place at the time the work was undertaken.

Run-off insurance is usually provided by insurance companies that provided cover prior to closure.  New insurers are reluctant to provide a run-off policy for a company which they have not insured prior to closure. Though it is difficult to predict the closure of a business, companies should try and remain with the same insurer two to three years ahead of closure because this will help to get the policy at competitive rates from the same insurer.

The provisions of a run-off policy look identical to extended reporting period (ERP) provisions, there are differences, while ERPs are written for only one year while run-off policies can have a tenure as long as five years. Second, ERPs are mostly purchased when an insured changes from one claims-made insurer to another, runoff provisions are generally used when one insured company is involved in an acquisition or merger with another company. In such cases, the acquired company buys a runoff provision that covers claims associated with wrongful acts that took place prior to the acquisition but are made against the acquired company after it has been acquired.

In case a company is sold and the liabilities are taken care of by the acquiring company then there might be no need to purchase a run-off policy.

Run-off insurance is purchased by individual professionals to protect themselves from professional liabilities after they have ceased to be in service or have closed their business.  For instance a financial consultant may need to buy such a policy to protect him from charges of negligence, errors and omissions from clients he had served prior to his retirement.

A ‘run-off’ cover protects a company or professional from any claims made once the protection offered by a professional indemnity expires.

To know more about getting the right run-off  insurance policy based on your needs  and an unbiased opinion on the best options please visit www.zenisure.com or call us on +91 9848884363

Why do you need insurance?

When an individual is approached to buy an insurance policy, most often the initial reaction ranges from  ‘I do not need an insurance policy’ or ‘I am financially secure’ or even  ‘Nothing can happen to me.’ But the reality is today one is exposed to more risks than in the past whether it is to one’s life, health, assets or business.  Having an insurance cover to mitigate the risks one is exposed to has become mandatory at present.

But the general reaction when asked to buy an insurance policy is largely skeptical.  People are afraid to invest in an insurance policy because they believe nothing adverse can happen to them or their assets.  They view an insurance policy as a dead investment, paying regular premiums without the expectation of a return is not an attractive proposition to them.  Also the experience of a bitter claims refund process puts some people off from buying an insurance policy altogether.

Today insurance companies offer a range of products to suit different needs and the companies compete with each other to offer the best to the customer. While the customer may be king he is often confused on the kind of policy he needs. He is lost in the maze of policies presented to him.

This is where an intermediary or the insurance broker can be a great source of help and information.  A broker gives the customer a comprehensive picture of the kind of policy he requires, educates him on the benefits and drawbacks of each policy and advises him on the best policy that will meet his needs. The broker also makes the process of buying a policy much easier and even helps in the settlement process when a claim arises.  Moreover a broker is committed to help policyholders in the entire claims procedure as mandated by the IRDA.

The range of services offered by an in insurance broker simplifies the process of buying an insurance policy while at the same time educates and empowers the customer with the right kind of information he needs to get the best benefits out of the policy he has opted for.

To know more about getting the right insurance policy based on your needs  and an unbiased opinion on the best options please visit www.zeninsure.com or call us on +91 9848884363