Intellectual Property Abatement Insurance covers litigation expenses incurred in enforcing the insured’s intellectual property (IP) against infringers up to the limits of the policy.

First, one of the conditions of the policy requires that before you can prosecute an infringer that stole your intellectual property or patent, you must submit to the insurance carrier a favorable letter from outside patent counsel (independent of the counsel you have chosen to litigate), at your cost, on matters of validity, infringement and legal impediments.  In other words, you must chose an unbiased attorney and present them with the facts of the case.  The unbiased attorney must provide a favorable opinion letter that your case is winnable based on all the facts.  

A second reason is when choosing an attorney to litigate against infringers your attorney 1)must be independent of the insured and 2) cannot have participated in the prosecuting or the securing of your Intellectual Property or Patent.

The third reason is, even if you current attorney passes the first two conditions or requirements, the insurance carrier requires that your attorney propose a reasonable budget for the work to be done to get you through a lawsuit.

In summary, the first two reasons above may exclude your attorney from being involved in the prosecution of infringers of your Intellectual Property; therefore, denying them an opportunity to make money. If you attorney passes the first two conditions, the third reason may limit what your attorney can charge.