Crown Jewel® Insurance and Chaucer announce innovative new partnership to insure US businesses’ trade secrets.

Crown Jewel® Insurance, an insurtech and Lloyd’s Coverholder focusing on trade secret asset risk management, and Chaucer, the global specialty (re)insurance group, will provide insurance for companies’ trade secrets in a new innovative partnership.

The product is the first of its kind to offer protection for the potentially huge loss in value a business can suffer if its trade secrets are stolen and made public or leaked to a competitor. Chaucer will be providing lead underwriting capacity; and the programme will be brokered by Acrisure London Wholesale.

Crown Jewel offers a full ‘Trade Secret Asset Risk Management’ product, called Crown Jewel® Protector. As part of the underwriting process, Crown Jewel Protector identifies, values, and offers recommendations on how to protect a company’s trade secrets.

In addition to threat of industrial espionage or disclosure by a trusted insider, trade secrets are increasingly at risk of being misappropriated through cyber-attacks. Should theft occur, Crown Jewel will supply forensic and legal experts to determine how the theft occurred, gather evidence of any misappropriation of trade secrets, and pursue recovery of the asset, injunctive relief, or both. Under the insurance policy, should a loss of market share or income result from the misappropriation of an insured’s trade secret, the pre-agreed fair market value of the trade secret is payable.

Trade secrets make up a huge proportion of the value to most modern businesses. An estimated 90% of the value of the S&P500 is intangible assets*, of which only 15% are protected by patents or trademarks. This means that of the S&P500’s current $32.1 trillion market capitalization, $24.6 trillion (77%) is made up of unprotected intangibles, such as trade secrets. Examples of trade secrets include proprietary algorithms, designs, software code, formulas, and unique workflows and industrial processes.

Without insurance, if risk mitigation such as Non-Disclosure Agreements and data security fail, the victim’s only recourse is litigation which can be extremely costly, time-consuming and has an uncertain outcome. Crown Jewel Protector helps secure a business’ trade secrets, which can prevent or minimize the loss and reduce the likelihood of protracted litigation.

*Ocean Tomo 2021
**Based on S&P 500 Market Capitalization of $32.13 trillion, December 31, 2022

"The launch of this product is the result of a multi-year passion project that should allow for a trade secret protection ecosystem to develop, including not only insurance protection for a company’s most unique know-how, but the monetization of those assets that will allow lenders and investors to support and fund innovation with a backstop that was not available until now.”
Mary Guzman
CEO and founder of Crown Jewel
“Chaucer’s deep expertise in the market will be a valuable resource for Crown Jewel as we launch this ground-breaking solution.”
Mary Guzman
CEO and founder of Crown Jewel
“Prior to the launch of this product there was no insurance available for businesses’ trade secrets, leaving the vast majority of their value unprotected. Crown Jewel Protector provides significant additional peace of mind for businesses that their most valuable assets are secure.”
Hayley Maynard
Head of Innovation at Chaucer
“Chaucer is delighted to partner with Crown Jewel in this insurance industry first. Crown Jewel Protector fills a real gap in the market which we are confident will be highly sought after by listed companies and mid-market enterprises alike. This will be a huge benefit for all businesses, but for those who would not be able to afford litigation should their trade secrets be misappropriated, it has the potential to be transformational."
Zak Mallen
US Reinsurance Underwriter at Chaucer
“Acrisure London Wholesale is proud to have sourced the capacity for this first of its kind, innovative product, addressing an important commercial exposure which until now has gone uninsured.”
Tom Quy
Senior Vice President at Acrisure London Wholesale

Published on 08.02.2023