eSports are one of the fastest-growing forms of entertainment right now. With events drawing in millions of viewers and yearly global revenue for the industry amounting to billions of dollars, the popularity and entertainment value of competitive video games is indisputable. However, when it comes to insurance, eSports fall into their own category. There are several reasons that traditional entertainment insurance does not offer the right coverage for the specific risks faced in eSports. Here is a look at what sets them apart.
What Is Entertainment Insurance?
The entertainment industry is broad and encompasses many types of businesses. Although those operating in the entertainment industry do face many of the same risks as other types of businesses, they also face some unique risks that require specialized entertainment insurance.
Who Needs Entertainment Insurance?
Some examples of businesses that need entertainment insurance include entertainment venues, such as theaters; entertainers, such as dancers and musicians; performing arts businesses, such as operas and orchestras; TV, film and video producers; entertainment service providers, such as providers of sound, costumes and props; broadcasters; event planners; and photographers and videographers.
What Does Entertainment Insurance Cover?
Entertainment insurance packages can provide these types of businesses with protection against a range of risks. For example, general liability can provide entertainment businesses with protection from third-party claims for property damage, personal and advertising injury, and bodily injury. Most entertainment businesses need this type of coverage to film on location, perform work for others, or rent facilities.
Another important type of insurance for the entertainment industry is Errors and Omissions insurance. This is particularly useful for film and video producers as it covers third-party claims related to the unauthorized use of plots, names, ideas, musical compositions and other acts, along with slander, defamation, libel and invasion of property. Third-party property damage, meanwhile, can cover claims of accidental damage to property owned by other parties, such as film locations.
These are just a few of the policies needed by businesses operating in the entertainment industry. Although there may be some overlap, it is important to understand that these entertainment policies are not suited to the specific risks faced by the eSport industry.
What is eSport Insurance?
eSport insurance is geared specifically to businesses that operate in the competitive video gaming industry. This involves people playing video games against one another online or at in-person events for prizes. Because it involves a range of players, businesses, sponsors and other organizations, eSport insurance has become its own category, and it is best to seek insurance providers who specialize in the industry.
Who Needs eSport Insurance?
Individual players, teams, leagues, event organizers, broadcasters, influencers and venues connected to the eSports world can all benefit from having eSport insurance.
What Does eSport Insurance Cover?
eSport insurance accounts for the many challenges faced by those in the industry. For example, eSports companies face complex compliance challenges, especially those that are connected to the gambling markets. Because it is a relatively new industry, regulations are constantly evolving, and having insurance is essential for staying protected.
Another big area of protection needed by the eSports industry relates to event risks. eSport events involve many potential security threats, with everything from cyberattacks to electronic glitches putting the entire event at risk. In addition, the large crowds that attend many of these events pose serious liability risks to venues and organizers that must be addressed with insurance.
General liability is a basic but important policy for anyone operating in eSports as it protects against fundamental risks, such as bodily injury and property damage that may occur on a business’s premises. Another standard type of insurance that eSports businesses need is property insurance to protect the specialist equipment and infrastructure used for eSports that can be difficult or costly to replace.
Cyber insurance is one of the most important types of protection needed by those in the eSports industry because of their high vulnerability to cybercrime and other risks related to the Internet. It can provide protection against threats such as phishing, spam, botnets, malware, ransomware, exploit kits, and denial of service attacks.
eSports players are at the heart of the industry, and they are vulnerable to a range of common injuries connected with gaming. For example, a top concern among players is carpal tunnel syndrome, which can create problems in players’ wrists and hands that prevent them from playing competitively. Tennis elbow, tendinopathy, trigger finger, and other repetitive motion injuries can all compromise a player’s career and put a team’s chances of winning a big prize in jeopardy. Therefore, competitive gamers need customized policies that offer protection against the unique risks they face.
Reach Out To The eSports Insurance Professionals
At MFE Insurance, our experience in the entertainment and eSport industries gives us a unique perspective that allows us to create the right package to address your business’s specific needs. Reach out today to learn more about our offerings.