Trademark Insurance: When Is It Worth the Investment?
Like car or property insurance, there is now IP insurance. It covers the costs of defending your mark in an infringement case, or pursuing infringers. A nascent product in Saudi Arabia but promising.
What IP Insurance Covers
Defense costs: if a party sues you claiming your mark infringes theirs.
Pursuit costs: if you want to pursue infringers of your mark.
Awarded damages: in loss cases, insurance covers part of the judgment.
Consultations: calls with specialist lawyers.
When Does It Make Sense?
Companies with IP portfolios valued at SAR 5M+.
Companies in high-risk sectors (fashion, tech, e-commerce).
Companies planning international expansion (multiplied risks).
Companies facing major competitors using lawsuits as pressure tools.
Cost
Annual premium: 0.5–2% of insured portfolio value.
A SAR 10M portfolio = SAR 50,000–200,000 annual premium.
Maximum coverage: SAR 1–20M per incident.
Providers
In Saudi Arabia: major commercial insurers have started launching IP products (Tawuniya, Bupa Arabia, Walaa).
Internationally: specialist firms (Aon, Marsh, AIG) offer cross-border IP insurance.
At Rights we work with specialist insurance brokers to offer suitable options to clients.
Is It Worth It?
For small companies: no. Insurance cost exceeds the likely risk.
For mid-size companies in sensitive sectors: yes, a financial stability tool.
For large companies: a risk management necessity, especially in late funding rounds or pre-IPO.
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