MULTI-PERIL INSURANCE
While Defense and Abatement policies provide help in paying for legal defense and judgments, but there are other costs from intellectual property lawsuits. Thankfully, Dumont offers additional coverages to cover costs related to litigation.
Multi-Peril coverage kicks in after the civil proceeding that caused or contributed to loss of value. While minimal coverage – about 10 percent of policy limits -- is part of Defense IP coverage, many organizations find that additional Multi-Peril coverage is necessary. Multi-Peril coverage options include: Business Interruption, Loss of Commercial Advantage and Redesign, Remediation and Reparation coverage.
Business Interruption Coverage
Many organizations are familiar with business interruption for work stoppage caused by uncontrollable factors like weather events. Such coverage helps replace lost income and material damages. In the same way, IP Business Interruption coverage protects organizations from adverse occurrences from intellectual property lawsuits.
IP Business Interruption coverage covers qualifying adverse occurrences when a preliminary or permanent injunction takes place relating to the organization’s manufactured products. Another occurrence is the loss of civil proceeding because it validates a third-party plaintiff’s intellectual property.
Loss of Commercial Advantage Coverage
Imagine relying on another company’s patent, trademark or copyright to develop products and services only to learn it lost a civil suit for IP infringement. Loss of Commercial Advantage insurance protects organizations from such cases. Since paying the appropriate entity can lead to higher production and/or royalty costs, the policy will help pay for those higher expenses.
Redesign, Remediation and Reparation Coverage
When a company losses an intellectual property lawsuit, changes necessary to ensure its survival. That’s the value of Redesign, Remediation and Reparation coverage. It reimburses the costs of making necessary changes to an organization’s products, services, processes or other works, are no longer too similar with the original intellectual property they were initially using.
Coverage includes the costs of product recall and redesigning, retooling or the disposal of the cause of infringement. The policy also covers costs associated with:
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restocking |
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shipping the new intellectual property |
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renaming and/or redecorating the businesses and |
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rebuilding goodwill with customers, retailers and distributions by covering necessary expenses to cover the |
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lawsuit’s effect on the insured. |
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