I thought the minimalistic “Mountain” icon I designed for a tech startup was genius—until we received a cease-and-desist from a massive outdoor apparel brand. They weren’t just asking us to stop; they were claiming my client’s new brand diluted their trademark worth millions. My client turned to me and said, “You said this was original. You handle the legal fees.”
Key Takeaways
- Trademark is NOT Copyright: They are different legal animals. Ensure your policy covers “Trademark Infringement” specifically.
- The “Search” Condition: Some policies only cover you if you can prove you performed a trademark search prior to the design.
- Defense costs eat the limit: Trademark litigation is incredibly expensive. A $500,000 limit might be exhausted by legal fees alone, leaving nothing for the settlement.
- Disgorgement of Profits: Insurance covers damages, but it usually does not cover the return of your design fee.
The “Why”: The Intentional Acts Exclusion
Trademark infringement is tricky because it implies you copied someone. Insurance covers accidents, not theft.
If the insurance adjuster finds evidence that you intentionally copied the competitor (e.g., you have the competitor’s logo saved in your mood board folder), they will invoke the “Intentional Acts Exclusion” and deny the claim.
Furthermore, in 2026, with AI generation, similarity is common. If you used an AI tool and it spit out a generic logo that infringes on a trademark, the carrier might use the “AI Exclusion” to walk away.
The Investigation: I Quoted 3 Major Carriers
I looked for policies that specifically handle “Unintentional Trademark Infringement.”
1. CNA (The Legal Heavyweight)
- The Pros: CNA is a massive commercial carrier. Their “Media Liability” policies are robust. They have an in-house panel of IP attorneys who specialize in trademark law. You get a real expert defending you.
- The Cons: They are picky. They prefer agencies over solo freelancers.
2. Philadelphia Insurance Companies (PHLY)
- The Pros: They have specific packages for “Media & Marketing Professionals.” Their definition of “Wrongful Act” is broad enough to cover trademark dilution claims.
- The Cons: Their renewal process is tedious, often asking for updated revenue figures and risk profiles annually.
3. Geico Commercial (Brokered via Hiscox/Others)
- The Pros: Accessible name recognition.
- The Cons: Geico usually acts as a broker for other underwriters (like Hiscox or Liberty Mutual). You need to see who is actually writing the paper. Don’t assume “Geico” means the same experience as your car insurance.
[IMAGE: Checklist showing “Trademark Search” requirements in an insurance application]
Comparison Table: Trademark Defense
| Carrier | Trademark Coverage | Search Required? | Legal Panel Quality | Best For… |
| CNA | Excellent | Usually Yes | High | Agencies |
| PHLY | Good | Varies | Medium | Freelancers |
| Basic BOP | None | N/A | Low | Retail/Cafes (Avoid) |
Step-by-Step Action Plan
- Preserve the Creation Trail: Gather your sketches, rough drafts, and timestamps. You must prove you arrived at the design independently and did not copy it.
- Review the Engagement Letter: Did you contractually promise to perform a “Trademark Search”? If not, point this out. Design is not legal advice.
- Trigger the Policy: Call the claims number. Trademark deadlines are tight (often 10-30 days to respond).
- Let the Lawyer Talk: Do not contact the competitor. Anything you say (“I didn’t mean to!”) will be used against you.
FAQ
I used a stock vector as a base. Am I covered?
Probably not for trademarking. Stock sites explicitly say their assets cannot be trademarked. If you sold it as a “trademarkable logo,” you might be liable for breach of contract, which is harder to insure than negligence.
Does my insurance cover the client’s rebranding costs?
If you are found negligent, yes. Your policy should cover the “Consequential Damages” suffered by the client, which includes the cost of pulling down signs and re-printing cards.
Why did my rates go up?
IP litigation is surging in 2026 due to AI-generated “noise” clogging the trademark offices. Rates for IP coverage have increased ~25% across the board.