[PaulAJ]

Two problems:

First, you won't be able to get insurance for this case, because it predates your policy. A bit like getting fire insurance when your house is already on fire.

Second, an insurance company won't just write you a blank cheque for legal fees, they will take over the case and look for the cheapest way out, which will probably be settlement.

[rocqua]

An insurance company dedicated to patent trolls might have a policy of fighting every case in court. If you have the resources to back up this threat, it means patent trolls are much less likely to actually go to court.

Hence, specific insurance against patent trolls could work by effectively taking away the easy targets for patent trolls. It's a bit like home-insurance companies that offer discounts on good locks to keep out thieves. Everyone except for the criminals are better off afterwards.

[Kelbit]

Yes, hence why I pointed out it didn't help in this case (there's already an NPE demanding license fees).

I don't know if the second point is a big deal. Even if they choose to settle, you've still mitigated your risk without going to court. And I suspect a patent litigation insurance agency is going to be motivated to negotiate very small settlements and/or actually fight it out in court, lest they gain a reputation as the company that hands out license fees.