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Does the Gaming Industry need to "Level Up" in Insurance?

Esports is one of the fastest growth industries in the world, yet many entities in and around Gaming, especially Esports, are uninsured or underinsured. Esports involves both the spectating of live tournaments or online platforms like Mogul. Intel Extreme Masters Ttournament held in Syndey attracted 20,000 spectators to witness a CSGO Tournament of the top teams in the world. To the ESports community, gaming competitively is both fun and a serious pursuit, with large prize money in the millions of dollars at stake, involving millions of players from around the world. Just recently, a Melbourne teen won $4.62m Esports prize money at the Dota 2 International final in Shanghai, leading him to become one of Australia's highest paid sports stars. As the industry grows, so does the exposure of the industry from a liability and asset position standpoint.

Risk exposures in the Esports industry
So what are some of the exposures that are faced by the Esports industry? The scenarios below show which would be the appropriate insurance covers to cover the costs in those situations: Have you been responsible for dealing with team indiscretions or contentious content broadcast by your team? Professional Indemnity Insurance would cover for costs of legal disputes. Do you produce marketing material and have you ever received a complaint regarding the content? Professional Indemnity Insurance would cover for the cost of any such legal disputes. As an ESports Manager or team owner, are you are aware of your obligations in case of a team member's minor or serious injury? Worker's Compensation Insurance for costs associated with this issue. What happens when a player is sick or injured when travelling overseas? Travel Insurance would cover for any costs or losses. Some of the highest exposures of players, owners, administrators and staff on an ESports team can include:

  • Loss of ESports players' earnings - What are the implications of a player's injuries that are long term and impede future participation?
  • Major incidents of eSports players whilst playing Overseas Tournaments exposure - What is the cost of evacuation or retrieval of a sick player? Who is liable if travel insurance has not been placed to ensure this is possible (the team owner or a contracted player), or more importantly if travel is taken for competitive means and not recreational purposes?

If you are in Esports, Game Development, IT, or any other Gaming related industry and would like to talk to a specialist about whether you need insurance, please contact us at Thunder Insurance.  

* The following information is provided for general information and education purposes only, and is not a substitute for professional advice. The use and reliance of such information on this site is solely at your own risk.
General Advice Warning: This advice is general and does not take into account your objectives, financial situation or needs. You should consider whether the advice is appropriate for you and your personal circumstances. Before you make any decision about whether to acquire a certain product, you should obtain and read the relevant product disclosure statement.

All information above has been provided by the author.


Eayl Machlis, Thunder Insurance, ABN 72623186176, AFSL 327131

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