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What are the key insurance risks faces by games developers?

The games development sector is one of the most exciting and fastest growing sectors in the UK, but is not without its risk. So, what are the key insurance risks faces by games developers?
  • Intellectual property is a significant risks. There have been a number of high profile legal battles regarding intellectual property. Most these law suits relate to the ‘originality’ of the games developed. The law suits can involve ‘tactical litigation’. Tactical litigation is litigation not used for the normal purposes of wining or losing a legal case, but instead to give expression to a tactical goal. In the case of games development, the tactical goal is usually to distract or cause harm to competitors, especially if your game infringes a competitors market space. Claims relating to game developers can be extremely costly. The website mentalfloss is gives background and examples for claims against games developers.
  • Confidentiality. The confidentiality risk have really emerged over the past 4-5 years. In the past you bought a game from a shop, and popped the game into your console, it involved no transfer of personal data. Nowadays, most games are not only interactive with other users, but can also involve in play purchases, and can be very personal to your requirements. Games developers must be very careful on how they manage, hold and process personal data. Failure to manage personal data in the correct manner can very easily lead to a ‘breach of confidentiality’ allegation.
  • Wright Hassall address some of the common legal issues in the following article: Legal issues for games developers.

We can provide the following insurance modules for games development companies: