CFC, the specialist insurance provider and pioneer in emerging risk, today announced the release of its bespoke insurance solution for licensing agreements. The new product expands on the company’s robust suite of media and intellectual property insurance products.
Worth an estimated $280 billion, the global licensing industry is rapidly expanding as brand owners increasingly monetize their intellectual property assets – like logos, trademarks, graphics and animations – through third parties.
However the Covid-19 pandemic has halted a long line of global events, and the financial impact of each cancellation or rescheduling decision could have a catastrophic effect for promotional partners, licensees and businesses involved in merchandising.
“License agreements often include a mandated insurance requirement, but to date the market has struggled to deliver a bespoke solution, forcing clients to purchase a full-fledged media liability policy instead,” said Jade Giltrap, Media Team Leader at CFC. “We’re excited to offer a standalone product with cover that’s designed specifically for these licensing exposures.”
Designed to protect licensees against unintentional breach of a licensing agreement, CFC’s new liability product offers a fit-for-purpose solution that covers individual licensing contracts or annual licensing agreements between multiple brands and the licensee.
CFC’s new product includes cover for breach of the license agreement, including selling in unauthorized channels or territories, incorrect usage or quality assurance breaches, and improper sublicensing among other activities. The policy also includes cover for intellectual property infringement in relation to the asset(s) specified in the agreement.
“There are numerous sectors where we see licensing activities as a core part of business, including sports, food and beverage, arts and entertainment, fashion, gaming and even corporate or institutional brands,” continued Giltrap. “While the long-term effect of the Covid-19 pandemic on licensee relationships remains to be seen, our product can help enable these businesses and provide piece of mind that they are protected while using third-party IP.”
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