Commercial General Liability Policy – Advertising Injury
Special Endorsements and Policies
Infringement Defense and Abatement Insurance
Exclusions to Coverage
Asserting Coverage
- If a claim has been asserted against your company, you must notify your carrier. Notifying your carrier immediately is in your best interest because a delay could be grounds for denying coverage. If a formal complaint has been served on the company, the following six steps are recommended.
- Counsel should analyze the policy or policies to determine under which policies the claim may be covered. In this step, the complaint should be closely examined for types of issues raised and should be compared to the relevant policy clauses.
- The company should promptly tender the defense to the carrier. All policies that may provide coverage should be identified in the tender, including the specific clauses.
- Demand a prompt response to the tender. If a sufficient extension of the time to answer is not granted, a response to the complaint may be due before the issue of coverage is resolved. If that is the case, then defense counsel should be retained until the issue of coverage is determined.
- Review the carrier’s response to the company’s tender. The carrier may accept defense; it may defend under a reservation of rights; the carrier or the policyholder may seek a declaratory judgment for a coverage determination, or it can reject the tender.
- If there is a conflict in the interests of the carrier and the policyholder, the policyholder should insist on the right to control the litigation and should further insist upon independent counsel.
- Be diligent about which documents are shared with the carrier, especially in cases where the carrier has reserved its rights to deny coverage. While the policyholder must cooperate with the carrier, in a case where a reservation of rights to deny coverage has been tendered, the production of certain documents to the carrier could result in the waiver of the attorney-client privilege as to the subject matter of the produced documents.
Commercial General Liability Policy – Advertising Injury
Special Endorsements and Policies
Infringement Defense and Abatement Insurance
Exclusions to Coverage
Asserting Coverage
- If a claim has been asserted against your company, you must notify your carrier. Notifying your carrier immediately is in your best interest because a delay could be grounds for denying coverage. If a formal complaint has been served on the company, the following six steps are recommended.
- Counsel should analyze the policy or policies to determine under which policies the claim may be covered. In this step, the complaint should be closely examined for types of issues raised and should be compared to the relevant policy clauses.
- The company should promptly tender the defense to the carrier. All policies that may provide coverage should be identified in the tender, including the specific clauses.
- Demand a prompt response to the tender. If a sufficient extension of the time to answer is not granted, a response to the complaint may be due before the issue of coverage is resolved. If that is the case, then defense counsel should be retained until the issue of coverage is determined.
- Review the carrier’s response to the company’s tender. The carrier may accept defense; it may defend under a reservation of rights; the carrier or the policyholder may seek a declaratory judgment for a coverage determination, or it can reject the tender.
- If there is a conflict in the interests of the carrier and the policyholder, the policyholder should insist on the right to control the litigation and should further insist upon independent counsel.
- Be diligent about which documents are shared with the carrier, especially in cases where the carrier has reserved its rights to deny coverage. While the policyholder must cooperate with the carrier, in a case where a reservation of rights to deny coverage has been tendered, the production of certain documents to the carrier could result in the waiver of the attorney-client privilege as to the subject matter of the produced documents.
The Last Word
Insuring your company’s intangible assets and its liability is a vital part of risk management. Insurance for both infringement of intellectual property and for an assertion of infringement against your company can provide financial security and peace of mind. Contact an InsureGood Advisor to compare your desired coverage to the specifically named offenses in policies based upon enumerated risks and will examine any exclusions that may weaken the coverage you seek. We are skilled at identifying the perils associated with intellectual property and high-technology companies and can assist you in selecting the right policy for you.