When should I consider IP insurance?
Consider IP legal expenses insurance while planning sourcing or launch, before any alleged infringement occurs or a potential claim is known or ought to be known. An existing dispute needs legal advice, not an assumption that a new policy will cover it. Coordinate your sourcing records with Cambridge China Bridge.
Put insurance on the sourcing agenda early
Use product planning as the trigger to speak to a specialist insurance broker, particularly where your brand, design or technical features matter to the business. Ask before committing to tooling, packaging or production, rather than treating launch day as the starting point.
Our IP and tooling guide covers protection and sourcing arrangements. This guide adds the insurance timing decision. Keep a separate checklist for insurance enquiries, legal checks and factory instructions so that progress on one does not obscure unfinished work on another.
Check before-the-event eligibility
The IPO guidance says before-the-event legal expenses insurance only covers risk before a claim is made or the possibility of a claim is known or ought to be known. For intellectual property, the alleged infringement must not already have occurred. Having received no solicitor’s letter is therefore not enough to establish eligibility.
Prepare a dated account of development, supplier discussions, samples, advertising and sales. Include any complaint, warning or concern about copying. Give this to the broker and ask for a written assessment of eligibility before relying on cover. For a product based on an existing design, use our competitor product checks guide alongside the insurance enquiry.
If infringement or a dispute is already known
The IPO guidance says cover cannot be provided where you are aware of ongoing infringement or know or believe infringement is likely to occur. Do not assume a new before-the-event policy can fund a problem that has already surfaced, even if no court proceedings have started.
Preserve correspondence, drawings, samples and the sequence of events. Ask an IP solicitor to assess the specific concern before further production or launch commitments. If you already have insurance, notify the insurer of the potential dispute and seek express agreement before incurring costs you expect it to reimburse.
Ask what the proposed policy actually covers
Enforcing your rights and defending allegations against your business are distinct types of cover; policies can provide them separately or together. Damages cover is another product feature. Ask the broker to identify which protection the proposed wording includes.
Give the broker your product description, relevant rights, business activities and intended sales markets. Ask which territories, exclusions, excesses and cost-sharing terms apply, and who may act as your lawyer. Request written answers tied to the policy wording rather than relying on a general description of IP insurance.
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Keep a decision file before ordering
Keep the application, disclosures, broker’s answers, policy wording and confirmation of the cover start together. Record any unresolved questions before approving tooling or production. Revisit the discussion with your broker when the design, branding or intended markets change.
Use our factory audit checklist for production capability checks alongside this work. Ask Cambridge China Bridge to coordinate factory-side sourcing records through its own staff in China, and share those records with your broker and legal adviser.
Frequently asked questions
Should I consider IP insurance before ordering?
Yes, raise it during sourcing planning. Before-the-event eligibility depends on the infringement and claim circumstances, so waiting until launch may leave you too late.
Can I buy IP insurance after an infringement?
The IPO says before-the-event IP cover is only available if the alleged infringement has not yet occurred. Seek legal advice and disclose the circumstances to a specialist broker.
Does no legal letter mean I am eligible?
No. The IPO’s test also concerns a claim possibility you know or ought to know about, and whether the alleged infringement has already occurred.
Can I instruct my own solicitor under my policy?
Check the wording and obtain insurer approval before committing to reimbursable costs. The IPO says some policies require a specified or panel lawyer at least initially.