The Massive Growth of Esports as an Industry
Within the last few years, Esports and gaming have exploded in popularity. From the humble beginnings of a niche pastime to a form of entertainment that is enjoyed around the world. Speaking of around the world, Esports has gotten international traction thanks to the social aspects of gaming. Besides playing together on a couch, at an internet café, or even at a tournament, the large component is live streaming. This is done with the help of the live streaming platforms like Twitch or YouTube Gaming. These platforms help build a connection with gamers and their audiences. Within the last few years many gaming organizations have built their brands off these platforms.
Esports has made its international presence known, with key markets in the Asia-Pacific, Europe, and North America. But in Canada, the Esports scene is on the rise with major cities leading the charge. Cities like Toronto and Vancouver have set the stage for Esports and gaming to flourish within the country. Many gaming organizations are based in these cities, such as Certain Affinity, Rockstar Toronto, Vancouver Titians, OverActive Media, and Luminosity Gaming.
To demonstrate how North America has contributed to the Esports scene, lexlogy.com found that, with “the most valuable Esports company in history [carrying] a $310M valuation, it comes as no surprise that investors have begun to take note. Total global revenues are expected to surpass $1 billion in 2019, $409M (37%) of which will be generated by North America.” (Miller Thompson LLP, 2019). The Esports scene has flourished into a major industry and will continue to see rapid growth. As a gamer, this is truly something special.
The Unique Risks in the Esports Insurance Space
When buying computers and building ideal gaming setups, the numbers can quickly add up. Especially if one owns an internet café or is hosting a gaming tournament. Equipment can be expensive, but it is just as costly if that equipment is not insured. It is like playing a video game with no checkpoints – if you lose, you have to start all over again. Like with any industry, there are a multitude of risks that exist within the esports and gaming industry. But what are those risk? That is a good question. These risks are:
- The possibility of damages to technical equipment, such as consoles, monitors, and keyboards
- The risk of property and or equipment being lost and or stolen
- Risks of property damage from events
- The possibility of damage to property from natural disasters
- Business environments showing signs of negligence (I.e., wet floors after cleaning up but no water floor signs are present)
- Lack of cyber security and or insurance can result in DDOS, phishing, ransomware, Identify theft, and other web-based attacks
- Incidents that can occur while travelling (lost/stolen equipment)
Esports & Gaming Insurance: As Useful as a Competent Teammate
As the sub-header suggests, Esports & Gaming Insurance can be as useful as a competent teammate. But why? That is another great question that can be answered. The concept of someone having your back is important. Whether in a game or in real life, there is one thing that stays constant: good teammates give peace of mind. This is what it really comes down to, peace of mind. One should not worry about the laundry list of risks that can occur at your establishment (blanket term for event, organization, business). This will help one focus on the true goal, making sure people are having fun with arguable one of the best pastimes. Just like teammates on your team, ReFrame wants to see you win.
What Kinds of Gaming Businesses can be Insured?
Now that one knows why Esports and Gaming Insurance is important, we must understand which kinds gaming businesses can be insured. Gaming businesses that ReFrame Insurance can provide insurance to include:
- General Gaming Facilities
- VR Facilities
- Internet Cafes
- Esports Teams
- Esports Organizations
- Game & Software Developers
- System & Console Developers
- and more
Here at ReFrame we understand the growing industry of the Esports and Gaming Industry, which is why we offer transparent policies that will have you covered. Get an instant quote by applying today!
Visit our E-Sports & Gaming Insurance page to learn more and get a quote: