Spawn Point

Every great gaming adventure starts at the spawn point. It’s that first spark of an idea, the seed of a world, a mechanic, a storyline, that sets everything else in motion. You and the team are buzzing with energy, busy sketching concepts, prototyping builds and dreaming big. Naturally, you’ll start to invest serious time, effort and resources into turning that vision into a playable reality but amid the excitement and the subsequent budgeting, one thing often gets overlooked; insurance.

Now, we understand that insurance can be one of those things that is relatively easy to push down the priority list when you are focussed on gameplay, funding and achieving milestones. Yet, from the moment you start your build, the reality is that you are creating something of value – be it intellectual property, the technology, the relationships and the revenue potential from your concepts – and without the financial protection insurance affords you, all of the hard work you are investing could be undone and count for nothing when faced with legal claims, cyber threats, data breaches and equipment loss or damage. Having the right insurance in place is vital.

So, let’s briefly talk insurance. Not the boring, jargon-heavy kind. In this article, we will provide you with real-life considerations for a gaming developer and hopefully explain to you why insurance needs to be part of your immediate considerations when developing from the start, rather than the “nice to have”, slotted in to your plans in the final stages.

So, what are the common risks?

Intellectual Property Disputes

Let’s start with the real hot potato – Intellectual property (IP).

IP is everything in gaming. Your code, characters, artwork, music and storylines—they’re all part of your unique creation. But in a crowded industry with many using AI assistance, similarities (intentional or not) can spark costly and expensive legal battles.

Professional indemnity insurance can cover the legal costs and compensation involved in defending IP disputes, whether you’re at fault or not. What impact would a legal dispute have on your game development without this protection, both from a cost perspective and the need, potentially, to re-do a considerable amount of work to fix the infringement?

Software Bugs & Failure to deliver

Despite your very best attempts, in-game bugs happen but what if the bug on your game causes real harm for the user? A glitch in-game could lead to unexpected losses for users. A mobile game might crash devices or expose sensitive user data. Perhaps your marketing promised features the release version didn’t deliver, leading to breach-of-contract claims?

This is again where professional indemnity plays a role in keeping you protected as a business, helping with defence costs and compensation payments if your software is blamed for financial loss or underperformance, or failure to meet any other pre-agreed contractual obligations.

Cyber-attacks and data breaches

A very common misconception here is that “a cyber-attack will never happen to me”. To a criminal, if you handle data which can be used for gain, you are a potential target. It doesn’t matter how big of an operation you are running. Criminals will often carpet bomb hundreds, if not thousands, of businesses with emails and viruses at one time, it then only takes one click on a rogue, attractive looking discount voucher from an employee and they are in.

Cyber liability insurance covers breach response, data recovery, legal costs, and even ransomware payments. It often includes access to emergency IT and PR support too, essential for damage control and ascertaining how the hackers got in to help close that door.

Some of the worlds largest games have been victim of cyber attacks in recent years, with leaked footage being shared online before the developers were ready to share it with the world. What was the loss?

Consider that millions are often spent on the launch of a much-anticipated game globally. Launch venues arranged; exclusivity deals for the launch content may have been signed etc. If the footage has been released early because of a hack, the value is instantly diminished and breach of contract claims could quite easily follow from those you’ve signed contracts with, rubbing salt into already gaping wounds. Insurance can help deal with the fall out.

Liability to the Public

Games can trigger unexpected physical or psychological reactions, from motion sickness, seizures and even emotional distress. If a player claims harm or loss from your game, your studio could be held liable in the event of proven negligence. Also, if you attend expos or events and someone trips over your equipment because the right precautions haven’t been taken, that’s on you too.

So, whilst not a legal requirement, Public liability insurance is very important and is insisted on by many event organisers as standard now. Public liability insurance protects against injury or damage claims arising from negligence within your game or physical presence at an event.

Employers Liability Insurance

The value of your general equipment can easily mount up to considerable sums of money. Having the insurance protection in place for your computer equipment and accessories is a must, protecting you from perils such as accidental damage, fire, flood or water ingress.

Why getting early protection makes sense.

Think about it, your game is still in development. You’re pouring in time, cash, creative energy and probably working with third parties like publishers, clients, or backers. Even a single claim (founded or not) can derail everything. Legal costs mount quickly, especially if IP or contract disputes arise.

Insurance doesn’t just protect your bank balance, it gives you the breathing space to focus on development, not damage control. It also shows partners and funders that you’re a serious, credible business with a risk plan in place should the worst occur.

Insurance might not be flashy, but it’s one of the smartest early investments you can make because in real life, when things go wrong, there’s no reset button. If insurance isnt in place at the start of your journey, you leave the business and the game concept widely exposed to a number of issues you could face in the production and roll-out phase.