Video Game Company Insurance
Getting business insurance for your video game company is essential.
Video game companies need to be protected against an abundance of different risks, such as those that relate to trademark and copyright infringements, contract violations, and employment law.
You will also want to protect your business’s equipment (e.g., work computers, office furniture, hardware, etc.) from potential theft or property damage.
We’ll help you find the most personalized and affordable coverage for your unique business.
Recommended: Next Insurance is dedicated to matching small businesses with the right policy at the best price.
Best Insurance for a Video Game Company
General liability insurance is — generally speaking — one of the most important insurance policies for video game companies.
Some of the risks general liability insurance covers are:
- Bodily injury
- Property damage
- Medical payments
- Legal defense and judgment
- Personal and advertising injury
Having said that, your video game company may benefit from purchasing additional coverage; this is because a general liability policy may not be enough to protect it holistically from all of its unique risks.
Additional policies worth considering include:
- Commercial property insurance
- Intellectual property insurance
- Workers’ compensation insurance
- Business income insurance
Note: You will need to decide what type of insurer you will get your business coverage from. As of 2024, there are two options available:
- Traditional brick and mortar insurers (e.g., Hiscox, CNA, etc.).
- Online insurers (e.g., Tivly, Next Insurance, etc.).
In most cases, we recommend going for an online insurer due to the decreased cost. This is because online insurers have significantly lower operating costs (e.g., no insurance agent, etc.), which allows them to offer more competitive rates.
Let's Find the Coverage You Need
The best insurers design exactly the coverage you need at the most affordable price.
Cost of General Liability Insurance
The average video game company in America spends between $450-$750 per year for $1 million in general liability coverage.
Compare the average cost of general liability insurance for a video game company to other professional industries using the graph below.
Several factors will determine the price of your policy. These include your:
- Location
- Deductible
- Number of employees
- Per-occurrence limit
- General aggregate limit
You may be able to acquire general liability insurance at a discounted rate by purchasing it as part of a business owner’s policy (BOP) rather than as a standalone policy.
A BOP is a more comprehensive solution that includes multiple forms of coverage, such as business interruption and property insurance.
Find the Best Rate
Discover the best coverage at the lowest rate in our low-cost business insurance review.
Common Situations That General Liability Insurance May Cover for a Video Game Company
Example 1: While visiting company offices, a consultant slips on a recently mopped floor. The consultant suffers multiple injuries, including a head injury. General liability insurance would cover medical care needed after a slip-and-fall accident on company property like this.
Example 2: An employee inserts a secret easter egg into one of your company’s games. The easter egg references another developer’s game and is meant in good fun, but the other developer takes issue and files a copyright infringement lawsuit. General liability insurance may cover costs associated with the suit.
Example 3: In order to boost sales during an initial game release, your company promises a discount on the game’s future sequel to customers who pre-order the first game. The sequel never comes to fruition, and customers sue for false advertising because they can never use the discount. General liability insurance would probably cover the resulting legal fees and settlements.
Other Types of Coverage Video Game Companies Need
While general liability is the most important type of insurance to have, there are several other forms of coverage you should be aware of. Below are some of the most common types of coverage:
Product Liability Insurance
Since your video game company makes money by selling products, product liability insurance is one coverage your business likely should have. This insurance helps protect businesses from lawsuits related to damage or injury that their products cause.
The product-related liability risks for video game companies aren’t clear at this point, but there are a few risks that the industry one day might face. For example, customers might successfully sue by claiming that a video game was too distracting and caused them to get hurt in an accident. Having product liability insurance in place now may help protect your business from uncertain risks like this.
Product liability insurance is available through a business owner’s policy (BOP).
Professional Liability Insurance
If your video game company provides consulting services to other game developers, you may want professional liability insurance for yourself and all consulting employees. This insurance usually covers mistakes made when giving advice in a professional capacity.
Professional liability insurance is available as a standalone coverage and through package policies.
Commercial Property Insurance
Any studio or building that your video game company owns should be covered by commercial property insurance. This insurance can often insure both structures and equipment kept in them. Make sure the limits adequately cover your company's computers.
Commercial property insurance is often available through a BOP.
Workers’ Compensation Insurance
If your video game company has employees, the business is probably required by state law to carry workers’ compensation insurance. Workers’ compensation protects against costs related to on-the-job injuries.
Among the injuries that it normally protects against is carpal tunnel syndrome. To make sure workers who develop this because of typing too much at work are covered, workers’ compensation should be in place the day your business hires its first employee.
Additional Steps To Protect Your Business
Although it’s easy (and essential) to invest in business insurance, it shouldn’t be your only defense.
Here are several things you can do to better protect your video game company:
- Use legally robust contracts and other business documents. (We offer free templates for some of the most common legal forms.)
- Set up an LLC or corporation to protect your personal assets. (Visit our step-by-step guides to learn how to form an LLC or corporation in your state.)
- Stay up to date with business licensing.
- Maintain your corporate veil.
Video Game Company Insurance FAQ
Yes, absolutely. You will need to first get a quote from an online business insurance provider like Next Insurance. Next allows you to then purchase a policy immediately and your coverage will be active within 48 hours.
A typical business owner’s policy includes general liability, business interruption, and commercial property insurance. However, BOPs are often customizable, so your agent may recommend adding professional liability, commercial auto, or other types of coverage to your package depending on your company’s needs.
"Business insurance" is a generic term used to describe many different types of coverage a business may need. General liability insurance, on the other hand, is a specific type of coverage that business owners need to protect their assets.
Yes you do. Business insurance protects from a variety of different risks, which in theory could emerge as soon as you begin interacting with clients and/or employees.
It is also a good idea to purchase coverage before you begin operating in order to protect your business’s commercial property (e.g., office furniture, work computers, software, etc.) from damage or theft.
Not necessarily. Certain exceptions may be written directly into your video game company insurance policy, and some perils may be entirely uninsurable.
Yes, an LLC is meant to create a legal barrier between your business and your personal assets and credit. If you haven’t formed an LLC yet, use our Form an LLC guide to get started.
An LLC doesn’t protect your business assets from lawsuits and liability– that’s where business insurance comes in. Business insurance helps protect your business from liability and risk.