How traditional Sports Insurance can apply to Esports is becoming a vital question as the industry experiences explosive growth, with global viewership now surpassing 500 million. As Esports matures, it increasingly mirrors traditional Sports, including the need for robust Sports Insurance policies to manage its unique risks. Here’s a look at essential Insurance policies Esports Teams and Organizers should consider:
General Liability Insurance
Venues like convention centers often require Esports organizations to hold General Liability and Excess Liability Insurance to use their spaces. These policies can cover bodily injury, property damage, and personal or advertising injury claims if your business is held liable.
Special Event Insurance
Short-term Event Insurance is essential for large-scale Esports tournaments and events. This policy can shield organizers and sponsors from financial strain by covering short-term liability. Many policies also offer Event Cancellation Insurance to cover cancellations or postponements due to power outages, extreme weather, or other unforeseen events.
Inland Marine / Equipment Insurance
Esports relies heavily on high-end, costly equipment like gaming PCs, consoles, and peripherals. Equipment Insurance protects against damage, loss, or theft, ensuring Teams can resume operations without financial setbacks.
Directors and Officers (D&O) Insurance
D&O Insurance protects Esports organizations against claims and lawsuits related to corporate management, such as misappropriation of funds, discrimination, overreach of authority, or failure to deliver services.
Sports Insurance in Action
In 2017, Fanatic’s CS team faced costly repairs when their gaming equipment was damaged during travel. Fortunately, their Equipment Insurance covered repair costs, allowing them to compete without delay.
Similarly, Na’Vi had a player’s setup stolen during travel, and their Equipment Insurance covered the replacement, enabling the Team to resume competition smoothly.
The Rise of Esports
How traditional Sports insurance can apply to Esports is especially relevant with the industry projected to reach $1.87 billion by 2025. This growth, driven by sponsorships, advertising, merchandise sales, and in-game purchases, reflects Esports’ expanding influence and economic potential.
Major Esports Competitions
As Esports grows, major events draw global attention. Here are some top tournaments:
- League of Legends World Championship: Hosted annually by Riot Games, this tournament features regional League winners and a significant prize pool.
- Mid-Season Invitational (MSI): Another Riot Games event that showcases top Teams mid-season and highlights emerging trends in Esports.
- The International (TI): Organized by Valve for “Dota 2,” TI is known for its massive prize pool, fueled by in-game purchases. It attracts global attention and high levels of engagement.
The Future of Esports Insurance
As the Esports world continues to grow, understanding how traditional Sports Insurance can apply to Esports is essential. Here at O2 Sports Insurance, we take Sports Insurance seriously. Our customized policies ensure Esports Teams and organizations can thrive in this dynamic field.
Contact us today at (855) 351-0202 for a personalized quote and learn how we can support your Esports goals.