CFC unveils new insurance solution for licensing agreements

Specialist insurance provider CFC has launched a standalone insurance solution for licensing agreements, designed to protect licensees against unintentional breach of a licensing contract.

The new product aims to expand the company’s suite of media and intellectual property insurance products.

CFC said the financial impact of COVID-19 related event cancellation or rescheduling decisions could have a catastrophic effect for promotional partners, licensees and businesses involved in merchandising.

The policy also includes cover for intellectual property infringement in relation to the assets specified in the agreement.

“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.”

Giltrap added: “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. 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.”