7. Two situations…… The solution for both lies in IP Insurance . Company A Company B This company is a start up and is thinly capitalized. Unfortunately, it is also the defendant in an IP law suit. The cost of defending the suit is causing extreme cash flow problems. What will happen if the decision goes against the Company and it is made to pay huge sums as damages? This Company is suing another Company, which is suspected to be thinly capitalized. The plaintiff Company is unsure about fund from where the other Company will be paying the settlement or monetary damages in the case of a favourable judgment.