What does patent insurance mean?

Patent insurance means that the applicant applies for insurance with the authorized patent as the subject matter. During the insurance period, the insurance company will compensate the applicant for the investigation expenses and legal expenses incurred by patent rights protection according to the contract.

The basic function of insurance is to transfer the risk to the insurer. In case of unexpected loss, the insurance company will compensate the insured for the loss. Patent insurance is used to pay litigation costs to protect proprietary rights or to resist infringement charges against other people's patents.