When it comes to insurance, most people think of it as providing protection against damage or loss of physical things, such as cars or property. However, it is just as important to protect intangible assets, and that’s where intellectual property insurance steps in.

Intellectual property is essentially a legal term which concerns ‘creations of the mind’.

Examples of intellectual property include music, literature, inventions, words, phrases, symbols, and designs.

These ‘creations of the mind’ can hold a significant monetary value, and it’s imperative that they are protected from copying and distribution.

Intellectual property insurance will essentially protect your business from the legal costs associated with either defending or pursuing an allegation of IP-related infringement.

Regional director of Jelf Insurance Brokers Julian Hilton said: “People often underestimate the worth of intellectual property, but these intangible assets can be very lucrative.

“Just think how much money would be lost if someone was to copy or steals your idea.

“It is also often underestimated the time and complexity that an IP litigation process can entail. It can be a very costly process, as legal costs can quickly escalate depending on the severity of infringement.”

So what steps should be taken to ensure you are covered against any possible infringements?

“If you or your business is working on an innovation of any kind, it is a good idea to speak to an insurance company to discuss the levels of cover needed”, said Julian.

“It is far better to have an in insurance policy in place and not need it than to find yourselves stuck in a dispute with no protection.