The esports industry—human-versus-human competitive gaming, where games are played in front of live audiences both in-person and online—has been going through rapid growth and change since the idea of competitive gaming became popular in the 1980s.

Since then, the global esports market has come a long way and is anticipated to reach $2.4 billion in total revenue in 2024 with a global audience predicted to reach 888 million this year, according to Research and Markets. The U.S. holds a dominant market position in the esports market, capturing more than a 37.2% share of the global market in 2023, according to Global Newswire. 

Live events have become a significant part of the esports industry as it continues to surge in popularity. From local tournaments to huge events that attract thousands of spectators, special events insurance coverage is crucial to protect the players, coaches, organizers, attendees and the evolving esports industry. One example is the League of Legends 2023 World Championship, which attracted 6.4 million online views and tens of thousands of fans watching live to witness the best league teams battle to become the world champions and etch their names onto the Summoner's Cup while playing the multiplayer online battle arena (MOBA) game.

While the industry explodes, so too must the special events insurance market. Just like any other type of tournament or special event, there's a lot that can go unexpectedly wrong—and special event insurance is the safety net in these instances.

“Many of the coverage options needed in the fast-growing esports industry align with other typical event and tournament needs, although some require unique coverage solutions," says Spencer Batt, president, American Specialty Insurance & Risk Services Inc., part of Arrowhead Programs. “Spectator liability, participant legal liability and excess coverage, especially in larger venues, are needed for most types of tournaments with live audiences across the board, including esports tournaments." 

Key special events insurance covers risks include property damage—as many events involve expensive equipment, including gaming rigs and sound systems—as well as the infrastructure within an esports event so that a client is covered for the risk of damage, loss or stolen property at the event. 

Another key concern is that, at many esports events, popular games are featured, raising intellectual property rights concerns. For hosts and broadcasters of these events, compliance with licensing agreements can ensure any potential infringement claims are avoided. 

For many, the gaming and esports industry is opening up a whole new world. Independent agents who want to focus on special events and an emerging niche can find ways to add value by collaborating with carriers that can offer customers the expertise and insurance protection they require. 

“Choose a provider with experience in underwriting and insuring special events," says Lorena Hatfield, marketing resource manager, K&K Insurance. “The size, activities, audience demographic and venue can vary greatly from event to event and a specialist can assist agents who may be new to the event insurance segment." 

As with every special event, “it's important to carefully review a copy of the venue's contract to ensure that all event liability requirements are met," says Sam Peterson, event senior product manager, Markel. “The contract typically outlines which specific coverage is required, along with coverage limits. By understanding these details in advance, agents can help avoid any last-minute surprises."

Olivia Overman is IA content editor.