The eSports industry has enjoyed significant growth in recent years. As competitive video games continue to make a big impression on popular culture, consumers, media outlets, brands and investors are all showing interest in gaining a foothold in this rising industry.
Insider Intelligence reports that 26.6 million monthly eSports viewers are predicted for 2021, a rise of 11.4 percent over 2020, and revenue is expected to hit $1.8 billion by 2022 thanks to live event ticket sales, sponsorship and advertising, media rights, in-game purchases, and merchandise sales.
Insurance offerings are evolving to keep up with the rapid changes in the eSports industry, providing players, teams, sponsors and event organizers with protection that addresses the unique needs of operating in the eSports sphere. Here is a look at some of the top benefits of eSports insurance.
Top 7 Benefits Of eSport Insurance
Individual Gamers Can Protect Their Future Earnings
Like traditional athletes, competitive gamers are at risk of career-threatening injuries at any time, whether they are practicing their skills or performing under pressure in front of audiences at major competitions. Some of the more common gaming-related injuries are those related to repetitive motions, such as carpal tunnel syndrome, tendinopathy, and tennis elbow. The strength training they carry out also places them at risk of injury. Short- and long-term disability insurance can help secure a player’s income should they suffer from an injury or illness that prevents them from competing at a specific event or working in general.
There is a lot of money at stake for players, with the video game industry valued at around $152 billion and growing. A prize pool at the 10th edition of the yearly The International tournament for Dota 2 surpassed $40 million, and Fortnite players compete for more than $20 million.
It Helps Other Parties Take Teams And Players More Seriously
eSports players and teams are often highly organized and professional, but the industry is not always treated with the same respect as more traditional sports. As spectator numbers and interest in eSports continue to grow, teams and players who have taken out the proper insurance can demonstrate to potential sponsors that their outfit takes their work seriously and is prioritizing protecting themselves and those who back them.
It is also important for tournament organizers, who may be required to prove to venues that they have event liability coverage before being permitted to hold their tournament there.
It Provides Important Protection To Tournaments
At the heart of eSports are the tournaments that garner millions of viewers and significant prize pots. These events involve months of planning, and when they need to be canceled due to circumstances outside of the organizers’ control, it can be financially devastating without the right protection in place.
Some of the financial risks that can be addressed by eSports insurance for tournament organizers include competitor or team lawsuits, cybercrimes, property damage, third-party lawsuits and event cancellation and liability.
It Can Cover The Cost Of Expensive Equipment
Many of the most popular eSports games require top-of-the-line computers with expensive processors, monitors and other equipment. Unfortunately, this equipment is vulnerable to theft or damage at its home base. In addition, when players and teams go on the road for tournaments and other events, equipment could be misplaced or stolen during transport or while staying in a hotel. Property insurance can minimize the financial damage should something happen to this vital equipment.
It Protects Those Who Are Promoting The Industry
The reach of social media influencers on sites like TikTok and YouTube has played a significant role in helping to promote and grow the eSports industry. Many influencers and video bloggers focus their entire operations on posting content related to eSports, and they can gain valuable protection from cybercrimes, lawsuits and lost wages with the right eSports insurance policy.
It Can Minimize The Damage From Hackers And Data Breaches
The digital nature of the eSports industry means that it is particularly vulnerable to internet-related risks like cybercrimes. As modern cybercriminals continue to devise new ways to access sensitive information and funds, it is important to mitigate the risks of malware, botnets, denial of service attacks, exploit kits and other data breaches with cyber insurance.
It Helps eSports Operators Stay Ahead Of Risks
eSports companies, especially those who are involved in gambling and betting markets, must often contend with compliance challenges.. In addition, the relatively new nature of the industry means that regulations are constantly evolving, and previously unseen risks are constantly appearing. Insurance offers protection for many of these unforeseen circumstances.
Reach Out To MFE Insurance Brokerage
MFE Insurance Brokerage offers a broad range of insurance policies tailored to suit the needs of the many parties involved in professional and amateur eSports. Get in touch today to learn more about our innovative coverage and risk evaluation that can ensure your needs are covered affordably and comprehensively.