FAQ category: Games Developers

You need cover because clients rely on your software and services more than ever, and the UK is becoming more litigious.

Our insurance products safeguard your business if things go wrong. It provides legal protection and also compensation to your clients if you are liable for any errors or downtime.

The right insurance protects you and your business.

• Professional indemnity insurance – This is crucial. It covers you for allegations of mistakes and negligence. It provides compensation to your client (or a third-party) in circumstances where you are liable due to professional negligence, and usually covers associated defence or legal costs.
• Cyber insurance – This mustn’t be underestimated. Even the largest companies can be hacked. You know IT security better than most but it only takes a small oversight for your systems to be compromised. We provide specialist support and our insurance will get your business back on its feet quickly if the worst happens.
• Public and product liability – This covers physical injury and damage and can be added to packages at a low cost.
• Employers’ liability – This will protect you from legal costs should an employee sustain a bodily injury in the course of their employment. If you have any employees it is compulsory in the UK to have employers’ liability and it can be added to packages at a low cost.
• Computers, laptops and office equipment – We advise insuring your IT equipment from theft and destruction and can offer cover for portable IT on a worldwide basis.
• Directors’ and officers’ insurance – This covers claims against directors or senior managers made in a personal capacity and is especially relevant if you have external investors who could hold company directors liable for failures or missed targets.

This depends on how your business is set up.

Contract games development
Studios developing games for third parties on contract typically see claims relating to:

• Breach of contract – Failure to meet project milestones and deadlines, often related to what is known as ‘project creep’, where clients gradually move project requirements or complicate the project, making it difficult for the developer to meet the initial deadlines.
• Intellectual property (IP) and copyright – Confusion between the client and developer as to who is responsible for IP or copyright clearances resulting in missed licences.
• Traditional negligence – Allegations the game fails to meet the required and expected standards.

In-house games development and publishing
For anyone publishing in-house, the main risk is always IP and copyright relating to failure to seek appropriate licences on artwork, branding, musical compositions and other graphic material.

The more serious IP claims stem from competitors, often larger companies, making allegations your game is a replica of their title, sometimes with the intention of stifling competition and preventing smaller studios from gaining a foothold in the market.

• If you have American or Canadian clients or contracts, they will probably be excluded and some insurers will restrict cover to UK claims only. However, policies can be extended to include USA and Canada protection for an additional premium.
• Most insurers will avoid liability for in-game purchases and loot box game mechanisms because there tends to be a high propensity for consumers to complain or request refunds (particularly if an in-game purchase was made by a minor). Instead, insurers tend to expect companies to resolve these low-value disputes themselves.
• Most policies will exclude any claims related to patents. In the software sector, you may not need it, but we can explore additional coverage if you need do. Deliberate acts, dishonest or fraudulent acts are usually excluded unless committed by an employee without the knowledge of senior management.

We cover:

• Developers self-publishing games for commercial release.
• Contract games development.
• Games released on any mainstream platform, including but not limited to PC, Xbox and Sony PlayStation.
• Games released on mobile only, via Google Play and Apple App Store.

Professional indemnity covers you for allegations of mistakes and negligence.

It provides compensation to your client (or a third-party) in circumstances where you are liable due to professional negligence, and usually covers associated defence or legal costs.

You’ll need a specialist technology product that covers you for things like breaches of infringement of intellectual property rights including copyright infringement, or any misappropriation of musical compositions, graphic material, or artwork.

We advise you have professional indemnity. This covers you for allegations of mistakes and provides compensation where you are liable due to professional negligence.

It usually covers associated defence or legal costs too which is vital when you are working with companies bigger, and more able to litigate, than yours. It will cover you for claims from clients and third parties.

All our quotes are personalised, and the premium is typically linked to the size of the business and your precise business activities. We find that in most cases, our policies are incredibly competitive.