To protect your gaming business, you need business insurance. It doesn’t matter whether you operate a large organization with hundreds of employees or are a solo entrepreneur—your business can suffer losses. If you don’t have coverage, the cost of things like company property damage or customer lawsuits will come out of your revenues.
Fortunately, it’s easier and more affordable to purchase business insurance policies than you may have imagined.
Getting the Right Types of Insurance for Your Gaming Business
Insurance companies offer various insurance policies for the different risks companies face. That helps keep your costs down since you only need to purchase coverage that applies to your business.
Some of the policies often purchased by companies in the games industry include:
- Professional liability insurance. Also called errors & omissions (E&O) insurance, this coverage protects your business if a customer sues you, alleging you made a mistake that cost them money.
- General liability insurance. This type of insurance covers lawsuits from non-employees (over injuries from slip-and-fall accidents at your location, for example), damage to others’ property, etc.
- Business owners policy (BOP). Also referred to as property & liability insurance, this type of policy covers liability issues and company property damage.
- Workers' compensation insurance. If you have employees, your state probably requires you to have this coverage. It protects employees financially if they suffer on-the-job injuries or illnesses.
- Cyber insurance. If you handle sensitive information like credit card data—and most businesses do—this policy can protect you if someone steals information and uses it to commit fraud or likely will.
- Umbrella insurance. This policy kicks in if the amount you’re liable for exceeds the limit of a liability policy. It can pay the difference up to its limit.
This isn’t a comprehensive list of insurance policies, but it addresses most of the risks gaming businesses are likely to encounter.
Determining Your Insurance Cost and Buying Policies
Most business insurance companies today enable you to get instant online quotes for the policies you need. Then, if you decide to make a purchase, you can do that from the company’s website, too. Typically, you can also report claims and manage your policies online.
In most cases, your coverage is active within a day or two.
Getting Certificates of Insurance
It’s common for business associates, landlords, and anyone with whom you enter into a contract to request proof that you have adequate business insurance. Your insurance company can provide you with what’s called a Certificate of Insurance (COI) for that purpose.
Typically, you can download a COI from your insurer’s website, which is much more convenient than waiting for an employee to process your request.
Finding a Trustworthy Business Insurance Company
There are many insurance companies out there. You want to work with one that meets a few key criteria. First, they should have business insurance experience. Going with an insurance startup is risky, as they may not have the skill to manage a large or complicated claim.
It’s also crucial to buy from an insurance company that has ample financial resources. Nothing is worse than filing a claim for a covered loss and subsequently learning the company can’t or won’t provide payment.
Finally, you should look for a company with a high credit rating, such as from AM Best. They should also have a positive reputation in the industry in general and with their customers in particular.
Nobody likes dealing with insurance tasks. But having adequate coverage is vital to the ongoing financial health of your gaming company. Once you’ve secured it, you can turn your attention back to your business, confident that if anything unexpected happens, your insurer “has your back.”