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Home > Blog > Does Business Insurance Cover Copyright Infringement?
MONDAY, DECEMBER 18, 2017

Does Business Insurance Cover Copyright Infringement?

Every business has the right to protect their copyrights and trademarks. Sometimes, mistakes happen. If your company is facing a claim of infringement, you must take action. Let your business insurance agent know.

In some cases, your liability insurance will help to cover the losses associated with these claims. There is more your coverage can do for you as well. Take a closer look at what you can expect here.

What Is Copyright Infringement?

Some companies own a copyright, a type of exclusive legal right to something. This could be something in print, published or on film. It can be musical, artistic or otherwise something unique. To copyright something, the company has to take steps to prove they own the right to it. It is a long process. However, if they hold a copyright, you cannot use that specific material for your own benefit without the owner's permission.

Here is an example. Your company creates a sales flyer. The flyer looks a lot like one used by another company. This may be a competitor to your business. That company notices your flyer. They hold a copyright for the unique material there. They sue you because you were benefiting from their copyrighted material.

What Happens in These Cases?

If you face an infringement claim, call your business insurance agent right away. The business insurance policy gives you some key help here. First, it will help you to navigate the claim. If it is substantial, the agency may help you to obtain and afford legal defense for a lawsuit. This is an opportunity for your business to gain help in defending against the claim.

If the claim is small, the agency may settle it. This means the agency will pay the negotiated settlement for the use of the material. If the case goes to court, the company may have to pay a larger settlement. In this case, the policy will usually help cover the amount. However, most policies have an upper limit. They will not cover costs above this limit.

Business insurance can help in many cases of copyright infringement. However, having proper insurance is essential. A basic general liability insurance plan may offer minimal help. It may not provide enough protection to meet your needs in a substantial case.

Of course, minimizing these risks is important. Take every step possible to avoid this type of outcome. When it does happen, seek out help immediately. Never pay a claim like this out of pocket. Instead, work with your business insurance agent through the process. It can help reduce what you pay for this type of case.


Contact the professionals at G & H Financial Insurance for assistance with your business insurance at 281-395-5497.

Posted 11:00 AM

Tags: business insurance, retail insurance, manufacturing insurance, wholesale insurance, doctors office insurance, katy, houston, texas
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