Real examples of patent indemnity cover
A safety deposit company offering safe storage to a range of customers made a claim with Hiscox. Business owner Trevor recently found himself caught up in the middle of a dispute regarding the pending patent on a product that had been stored with him during the patent application process.
Trevor became tied up in a patent dispute
A customer (Company A) had come to the business to store a new product that they had designed, while they awaited the response for the patent application. After publication of the patent application, another company (Company B) approached Trevor with a request to be furnished with samples of the product. His first point of call was to seek advice from the patent office, and was given the go ahead to send samples of the product to Company B. This subsequently resulted in Company A applying for an injunction to prevent the product from leaving the country and being delivered to Company B. Due to his involvement in the ordeal, Trevor was caught up in the legal proceedings that followed the disagreement.
To Trevor’s luck, his business insurance policy with Hiscox includes professional indemnity insurance, which meant we could work with him to ensure his business was not affected by the proceedings between Company A and Company B. This nature of cover is designed to protect businesses such as Trevor’s if client data or property is compromised.
The matter was a complex multi-jurisdictional dispute, so we worked with Trevor and specialist patent lawyers to remove his business from the case. Thankfully we were able to extract Trevor from the legal proceedings without any implications for his business.