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    What Types of Insurance Policies Are Common?

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    PBLINK Editor 18, February 2024

    Gaming Operations: What Types of Insurance Policies Are Common?

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    The world’s most lucrative entertainment sector is gaming. According to Statista, the global video gaming market has reached a worth of $385 billion. This includes the sales of video games and consoles, along with revenue made from official eSports leagues, merchandising, and similar sectors. Clearly, gaming is the future for global entrepreneurs involved in entertainment. 

    Given the rise of this industry, it’s no surprise that many companies and individuals involved are seeking specialized forms of insurance. But what do you think about when imagining gaming and insurance? Prior to the rise of video games, gaming and insurance intersected to cover smaller, niche things, such as blackjack insurance when playing casino games. 

    For those who haven’t played this card game, blackjack insurance is designed to offset risk when the dealer could potentially hit blackjack. It protects players by returning 50% of their original wager if the dealer hits 21. But this type of insurance covers the micro-level of gaming. Given that the video gaming industry is worth so much, many more conventional-looking insurance policies are much more involved and expansive. Let’s explore.


    Policies for Live Events & Tournaments

    One of the most important elements of the eSports industry is the organizers who regularly manage local, regional, and international events. Just like a professional sports game, there’s a lot that goes on behind the scenes to make these events possible. Tournament and event organizers now lean on insurance to mitigate all sorts of outcomes. 

    Most policies cover things like public and employer liability, cyber insurance that protects from web-based attacks, event cancellation policies, transmission failure, and even prize indemnity. Unlike professional sports, cyber insurance policy is particularly important, as it prevents hacking and other forms of cheating.

    But there’s another important element underpinning each live event: high-speed internet. Without a tried-and-true setup, organizers are at risk of hosting a failed event. Similarly, organizers must also have access to the correct licenses for all games and eSports teams. This usually requires organizers to have some type of intellectual property protection in place.


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    Policies for Elite eSports Teams

    Insurance groups also offer plenty of policies that eSports teams regularly fall back on. Most coverage for teams focuses on the basics, like public, media, and product liability, along with things like property insurance and travel insurance. The latter considerations are important because eSports teams regularly use hefty and pricey equipment, while also traveling great distances for major events. 

    Employment practices liability has also been important for many eSports teams and organizations. That’s because eSports remains a frontier within the entertainment industry. It straddles both professional sports and gaming, which means that things like player contracts, discrimination, and breaches of contract are still being hashed out. In other words, industry standards haven’t quite been set, and that puts teams and organizations at risk in unique ways.


    Policies for eSports Players & Streamers

    An eSports player is someone who is contracted to compete on an official team or with a specific organization. On the other hand, streamers are individuals who live-stream their gaming sessions and make their money by interacting with subscribers. Both avenues are highly popular for players—but they require different types of coverage. 

    Esports players with contracts will be covered by their team’s insurance policy. Usually, these policies cover things like injury, personal accident, and even contractual bonus stipulations. The goal is to protect a player’s health, earnings, and assets. Policies geared toward individual streamers look quite a bit different. 

    Along with personal accident insurance, most streamer policies cover things like hacking and cybersecurity concerns, long-term disability, and even commercial property coverage. The idea is to protect streamers in the event they lose access to their account or their account is compromised by an external force. The world’s most popular game-streaming platform, Twitch, offers a specialized form of insurance for its live-streamers. Along with most of the considerations mentioned here, access to healthcare is usually the first reason streamers seek out a policy.