Video Game Insurance Hong Kong -title

We all have played some games, whether on our PlayStations, phones, or computers. Video games are incredibly addictive and take us into a fantasy world for a few hours. Moreover, playing games can improve brain activity (not all) and are fun. Therefore, we should be thanking the video game industry for their intense hard innovative work to create the best games for our entertainment. 

In fact, the video game industry is one of the most exciting growing industries, with new games, consoles, and incredible technology adaptions. The industry has been around for decades, from pixel games to the crazy realistic graphics we see now. Additionally, it is an industry with high competition and risks.

These video game business risks are intense as they can destroy a business from lawsuits or cyber-attacks. It is an industry that is constantly under pressure, and one slip can cost them millions.

When faced with these risks, every business in the industry should have protection to deal with them. For this protection, video game businesses should purchase video game insurance. The article will explain the industry risks and how video game insurance is the perfect solution.

What Is Video Game Insurance?

Video game insurance solution is a combination of different policies that protect any video game business from liability, product defects, property, cyber and employee risks. The insurance solution is the best defence when things go wrong due to a hack, mistake, or misunderstanding.

The insurance solution includes professional indemnity, cyber, product liability, property all-risk and employee compensation insurance. The industry can be complex, and the range of insurance is almost a must to be a successful growing business in this modern age.

Additionally, the insurer can customise the insurance solution for any size of business or even individuals.

What Should Video Game Insurance Include?

Professional Liability

There is a game about almost everything today – each game has its own target market and purpose. Some games involve a high amount of violence and possibly offensive messages. Such as a game like GTA, which is basically played to steal cars and kill people. When creating PG+ games, the customers can be split into people who love the game or customers who find the game destructive (parents). The video game business must put appropriate age ratings and precise descriptions to avoid professional liability lawsuits.

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A business can also be a victim of professional liability lawsuits if another company or person believes the game involves copyright infringements. For example, Lindsey Lohan sued Rockstar company because she believed the company used her likeness to create the woman on GTA V game cover art without her consent. Later, the case was solved in court when rockstar proved the art was based on an Instagram model they had permission from.

Hundreds of professional liability lawsuits can affect a video game business. Video game insurance includes professional indemnity insurance that will cover professionals and companies against negligence claims from clients or customers. In addition, the insurance will cover legal and settlement costs (if the case is lost). Your business may not intend to offend or copy anyone, but the public and competition can be unpredictable.

Cyber Protection

Cyber risks affect almost every business worldwide, and the video game industry is one of the main targets. There are always cybercriminals who want to steal game data and infect servers with ransomware. Additionally, the global video game industry suffered more than 240 million cyber-attacks in 2020/21, a 340% increase from 2019. It is one of the worst risks the industry faces and tries to protect itself against. However, these hackers are getting smarter and finding ways to get through- even into big companies.

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For example, one of the most popular sports gaming company: ‘EA’ was hacked in 2021. The hackers stole Over 780 GB of data, including source codes for games like FIFA 21. Hackers allegedly broke into the developer’s systems and then sold the sensitive data for millions. So even a huge company like EA is not safe from these attacks.

Unpredictable cyber-attacks are precisely why video game insurance includes cyber insurance. The insurance will quickly connect the business with cyber security experts and cover all costs to recover data, inform clients and get rid of the harmful virus. It is the perfect insurance to recover from a cyber-attack and focus on a stronger cyber security plan.

Product Liability

The video game industry has a wide range of products, including consoles, VR sets and games. Each product has been made for a specific purpose. Almost all gaming goods come with warning labels, age restrictions and instructions. However, there can be product defects that can result in customer injuries or property damage. These incidents can lead to costly lawsuits against the gaming product business.

An example of a product defect leading to property damage is: when the Sony PlayStation console overheated and began a fire, almost burning down a house. The house owner sued the company for property damage and commission. Sony was liable for the outcome of its product and paid all these fees.

Product liability- Pokemon Go games

Another example is the frequent lawsuits against the popular mobile app game-Pokémon Go. These lawsuits allege they have been injured trying to find Pokémon in rural places or have had drivers crash into their property due to playing the game. These claims believe the product has many defects that do not consider third-party safety. The game allows customers to drive and play by just clicking one button (I am not driving).

Customers will always blame the business, even if it was their fault. Video game insurance also contains product liability insurance in case of third-party risks. The insurance will cover claims that arise from third-party injuries or property damage due to any product defect. The insurance will provide legal, compensation and brand damage costs.

Employee Compensation

Video game designing is known to be one of the toughest and most complex jobs. They spend months to years to make sure the graphics you love are realistic and enjoyable. Their jobs include complicated coding, design, animation and much more. A game that you can finish in a few days- takes typically 5-8 years to design and complete. Therefore, gaming businesses are liable for supporting their hard-working employees and compensating them when injured.

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Sitting in front of a screen for hours already has a harmful effect on your body, and for designers, it can be much worse. They are always in danger of developing severe back and finger joint problems that can affect them temporally or permanently. For example, the most common serious injury is carpal tunnel syndrome; this injury can damage the tissues in the hand and will need immediate attention.

The business is responsible for paying for the medical attention employees need and providing their salary during their recovery break. In many cases, these injuries can be permanent; therefore, the company will have to provide significant compensation. Therefore, gaming companies can purchase employee compensation with video game insurance. Employee compensation insurance will cover the cost of medical care, salary, and compensation. Employees deserve the best care with the amount of time they put in for the businesses.

Property All-Risk

To build a game, individuals or companies need a large amount of equipment. The essential equipment includes laptops, hard drives, screens and more. The bigger the company, the more equipment and storage are needed. These crucial pieces of equipment can be costly and must be protected from any shocking incident.

IT Gaming servers

Equipment can be damaged, lost or stolen. Damages could happen due to fires, floods, or natural disasters. In any case, the damage or loss can ruin a business and all the work they spend years on.

This is why property all-risk can be added on to video games insurance. Property all-risk insurance will cover the building, equipment and most other physical assets under the business ownership against unpredicted events. In addition, the insurance will cover if the assets are damaged, lost or stolen and will reimburse the market cost. The gaming industry is very competitive, and you don’t want to lose to your competitors due to a damaged laptop or hard drive.

Benefits Of  Video Game Insurance 

Having the right insurance solution is crucial in the video game industry, especially with the increasing risks and sensitive generations. In addition, video game insurance has multiple benefits for the business when things don’t go as planned.

One of the most essential benefits is financial protection for the policy holding businesses and professionals. The insurance solution will reimburse the cost spent facing the claims no matter what and how it arises. The costs saved can be spent fixing the problems to avoid future lawsuits.

Another vital benefit of video game insurance is digital property protection. The gaming industry has a lot of sensitive data they must protect. The cyber insurance factor will help these businesses protect their digital assets and recover from hackers quickly before it’s too late.

Video game insurance gives businesses the protection needed in the industry to deal with these risks and come out stronger.


To learn more about Video game insurance and protect your company from the above risks, contact Red Asia Insurance.