The esports industry is exploding. Projections show the global market growing to over $198 billion by 2030, driven by the demand for high-stakes competition, massive fan engagement, and lucrative sponsorships. While this growth presents exciting opportunities for companies in the esports sector, it also comes with a unique set of risks, from player injuries to property damage and intellectual property infringement. Founder Shield offers specialized insurance for esports companies, providing the comprehensive protection you need to innovate and scale with confidence.
Although it began as a niche activity, esports (short for electronic sports) has exploded into a global phenomenon. At its core, esports is organized, competitive video gaming where individuals or teams play against each other for prizes, often significant cash awards. It’s a professionalized world with dedicated tournaments, professional players and teams, and popular games that draw in fans from all over the globe.
Viewers can watch games live on streaming platforms, with major tournaments attracting millions of spectators. This massive audience has driven a huge surge in revenue. Global esports revenues, which include everything from advertising and sponsorships to merchandise and ticket sales, have already surpassed $1.6 billion and are projected to exceed $2.5 billion by 2025. This makes it one of the fastest-growing sectors in the entertainment industry.
Why is Insurance for Esports Companies Important?
Esports companies can use insurance to protect themselves from various risks, streamline their operations, and build credibility within the industry.
Managing Unique Liabilities
Esports tournaments and events, whether online or in-person, come with a variety of potential hazards. This can lead to player injuries, property damage at venues, or even legal issues related to intellectual property. Insurance protects your company from liability claims that can arise from these incidents.
Securing Physical and Digital Assets
Gaming hardware, from high-end PCs to consoles and servers, is highly valuable and susceptible to theft, vandalism, and damage. Additionally, digital assets like intellectual property and sensitive user data are vulnerable to cyberattacks. Insurance provides a crucial backup plan to protect your essential equipment and data.
Navigating Regulatory Requirements
As the esports industry grows and formalizes, governing bodies are implementing new regulations for player contracts, event safety standards, and data privacy. Insurance helps ensure your business meets these compliance requirements so it can operate legally and continue to grow.
Ensuring Business Continuity
An uninsured incident, such as a major venue fire, a crippling cyberattack, or a lawsuit, could severely disrupt your operations. Insurance provides the financial protection needed to repair or replace assets and manage legal costs, ensuring your business can quickly recover and continue its operations.
Esports Insurance Coverage & Policies
These coverages form the foundation of any risk management program for esports companies:
The potential of a customer being injured while operating a scooter or bike is the biggest risk facing the micromobility space. In addition to the need to insure yourself against this risk, it’s crucial to know that this coverage will be required in at least $1M per occurrence and $2M in the aggregate in every city you wish to operate. Most cities will actually require more.
When employees sustain work-related injuries, employers are typically responsible for their medical costs and lost wages. This policy covers these expenses, protecting employees while keeping companies running smoothly.
Any company with employees faces the risks of allegations, such as discrimination, wrongful termination, breach of contract, etc. This coverage protects companies against lawsuits related to employment practices.
Cyber insurance protects companies from third-party lawsuits relating to electric activities (i.e., phishing scams). Plus, it offers many recovery benefits, supporting data restoration and reimbursement for income lost and payroll spent.
Shareholders, competitors, investors, etc., can sue a company’s directors and officers, putting their personal assets at stake. Directors and officers (D&O) insurance protects these assets from lawsuits alleging leaders of wrongful acts managing the business.
Whether it’s a devastating fire, natural disaster, or burglary, property insurance responds. This policy reimburses companies for direct property losses, supporting recovery and momentum.
In the unfortunate event that an essential member of your team passes away, this coverage responds to many professional concerns. It provides funds to help your company recover from the loss and eases investor’s financial concerns while letting you focus on your team and business’s future.
The cost of insurance for esports companies is highly variable and depends on several key factors. A company’s size, its revenue, and the overall value of its assets all play a significant role. The specific risks being insured, or “exposures,” are also a major consideration. An insurer will evaluate a company’s safety, compliance, and risk management practices, such as event security protocols and player health programs, to determine a premium.
The program’s structure, including the deductible amount and the company’s willingness to assume more risk, also influences the final cost. Finally, a company’s claims history—specifically the number and type of past claims—will be a major factor in calculating the insurance premium.
Esports Claims & Examples
Navigating a commercial insurance claim is often challenging, often fraught with confusion and multiple unknown factors. The following four-part series outlines the ins and outs of commercial insurance claims:
The most essential coverage for an esports company is typically General Liability insurance. This policy is the foundation of a solid risk management program, as it protects the business from claims of bodily injury or property damage to a third party. Given the high risk of injuries at live events, damage to venue property, or other third-party claims, General Liability is a critical part of a company’s financial defense.
Effective risk management is crucial due to the unique risks of the esports industry. These risks can include player health issues, injuries at live events, property damage, and cyber threats to sensitive data or intellectual property. A strong risk management strategy—including player wellness programs, robust event security, and comprehensive cybersecurity measures—can reduce the frequency of claims, improve overall safety, and ultimately help lower insurance premiums.
High-end gaming PCs, consoles, and peripherals are essential and valuable assets for any esports team. Inland Marine or Transit & Transportation insurance is the ideal policy for this. Unlike standard property insurance, which typically only covers items at a fixed location, this type of policy covers your equipment wherever it goes—whether it’s at your team’s training facility, traveling to a live tournament, or stored in a different location. It protects against a wide range of perils, including theft, accidental damage, and fire.
Finding esports insurance coverage doesn’t have to be painful. We aim to make the purchasing experience as streamlined and intuitive as possible.
1
Get a quote
Use our custom-built digital platform to get quotes fast. We automate clerical tasks that plague traditional insurance brokerages, giving us more time to be responsive and alert to your company’s needs.
2
Pair with a specialist
No two organizations are the same. Our team of coverage experts partners with your team to engineer your risk management strategy, together. We take the time to understand the intricacies of your company to get you the best possible coverage.
3
Stay one step ahead
To do better, you need to know better. With changing political, technological, legal, and economic landscapes, staying ahead of the curve is critical.
Our in-house team is tapped into the latest developments in your industry, proactively ensuring you’re covered.
Schedule Time with an Esports Expert
Risk Calibration
Let’s figure out if you’re under- or over-insured and whether your current policies have detrimental gaps.
Identify Cost Savings
We’ll compare your current policies with our extensive benchmarking database to see if your risk and costs have kept pace.
Risk Calibration
Walk away with a detailed plan to manage risk as your company scales — no strings attached.
Why Choose Founder Shield?
Founder Shield is a leading insurance provider that specializes in offering comprehensive coverage for esports companies, offering numerous benefits and advantages over traditional insurance providers. Here’s a breakdown of some of the key features and benefits that you’ll enjoy with us:
Benefits of Choosing Founder Shield
Industry Expertise
Founder Shield is focused on protecting rapidly evolving esports startups. We ensure that our products are tailored to meet the unique needs of esports companies.
Customized Solutions
Founder Shield offers bespoke insurance policies that are designed specifically for each client’s needs, ensuring comprehensive coverage that addresses the unique risks associated with esports operations.
Fast Quotes
With Founder Shield’s streamlined quoting process, you can receive a personalized quote for your esports insurance quickly, allowing you to make informed decisions fast.
Ease of Use
Founder Shield’s user-friendly digital platform makes it easy to manage your insurance policies, submit claims, and access important documents whenever you need them.
Dedicated Support
Founder Shield provides exceptional customer service, with dedicated account managers who are always available to assist you with any questions or concerns you may have about your insurance coverage.
Scalable Coverage
As your business grows, Founder Shield’s insurance policies can grow with you, ensuring you always have the right level of coverage for your changing needs.
Founder Shield is a preferred choice for esports businesses because of our specialization in the industry. We offer flexible and customized insurance policies, a speedy quoting process, and exceptional customer service with dedicated account managers.
Great service – proactive, responsive, go beyond what I have expected from previous providers. The team do a wonderful job
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info@foundershield.com 
28 Liberty Street, New York, NY 10005 
646.854.1058 
Amit Patel
