Insurance for Esports Companies

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Overview

Although it began as an underground activity, Esports (aka electronic sports) has become one of the fastest growing industries of the 21st century. Briefly, esports is competitive video gaming where people play against each other either online or at events, usually for a cash prize. Unsurprisingly, esports has become its very own entity, with its own tournaments throughout the year, professional players, teams, and games for fans to follow worldwide.

Viewers can watch games live online via streaming platform, with larger esports tournaments pulling in millions of spectators. Global revenues from esports — including advertising, sponsorship, merchandise, and ticketing — rose significantly year-on-year to surpass $1 billion for the first time this year. It’s expected to hit $1.8 billion in 2022.

Why is Insurance for Esports Company Important?

The esports industry is changing and growing rapidly. Although esport companies face similar risks as other businesses, many exposures are unique to the industry. Consider hosting a tournament where the venue requires liability insurance to book the space. In the gaming world, events must go smoothly to keep momentum. Having the right types of coverages mitigates any risk exposures that may arise in this industry.

In addition, there are higher barriers to entry as more sports move towards a franchise model. Teams need to work harder and consider ways to protect themselves from the associated risks and increased costs. As levels of corporate investment increases in the industry, teams need to demonstrate to investors that they are protecting themselves from the unexpected.

The importance of computers and system integrity for e-commerce companies cannot be overstated, so let’s start with some of the risks insurance addresses. The theft of customers’ personal info — or worse yet, their financial info — is a looming threat for online retailers. Bad actors can wreak havoc by stealing data, encrypting your data and extorting you, or shutting you down with a DDoS attack. These challenges can cause lasting damage to a company who isn’t prepared to face them.

Event Risks

The reality is that mass gatherings like esports events are vulnerable to attacks and a great number of things can go wrong. Event organizers must take all potential threats to security very seriously when dealing with such large crowds.

Legal & Regulatory

Widely growing and unregulated betting & gambling market pose compliance challenges for esports companies. There have been a number of government legislation changes or even bans as seen in China recently with some games.

Emerging Risks

The industry is still in the early stages of development, competition can be fiercer and costs can run high with new entrants vying for position and new unforeseen risks continue to appear.

Cybersecurity

Over half of all gamers have experienced a cyberattack, whether it was via a login or more significant threat. That said, DDoS attacks are a go-to for cybercriminals, with a wave of these threats occurring in 2020.

Types of Esports Companies that need insurance

  • General Gaming Facilities
  • VR Facilities
  • Tournaments
  • Esports team
  • Esports organization
  • Game & Software Developers
  • Events
  • System & Console Developers

Frequently Asked Questions

The cost of insurance for esports companies will depend on several things, including the company’s size and development stage. Other factors include:

  • Exposures: risks being insured
  • Company practices: views on safety, compliance, and risk management
  • Program structure: the amount of deductible and willingness for a company to assume more risk
  • Claims history: the type and amount of past claims against the company

How it works

Finding insurance coverage doesn’t have to be painful. We aim to make the purchasing experience as streamlined & intuitive as possible.

1
Get a quote

Use our custom built online portal to get quotes fast. We automate clerical tasks that plague the traditional insurance brokerages, giving us more time to be responsive and alert to your company’s needs.

1
Get a quote

Use our custom built online portal to get quotes fast. We automate clerical tasks that plague the 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.

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 of your industry, proactively ensuring you’re covered.

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 of your industry, proactively ensuring you’re covered.

Rachel Jenkins, Customer Success Manager

Meet your specialist

Rachel is one of the premier leading insurance professionals with almost 10 years of experience in the industry. She has been with the Founder Shield team for several years, focusing on client advising and improving policy language for venture-backed companies.

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