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Safeguarding Your Gaming Future – Insights from Packetts

Packetts, an affiliate member of Game Republic, share their views on how to protect your games business in a guest feature.

The game industry, a realm once dominated by a few, has ballooned to over 68,000 developers in 2024 on Steam alone, one of the largest gaming distribution platforms. As indie studios develop, so do the risks. Packetts, with over a century of experience, stands ready to navigate the labyrinth of risks in this dynamic landscape. Explore more about protecting your studios below:

Navigating Risks Alongside Success

In a sector where success can be as swift as a game’s overnight popularity, managing risks becomes paramount. Progressively more indie titles are reaching millions of downloads in short periods. These achievements often lead to higher expectations of the developers and studios begin to expand their team, hire more office space, and outsource more work. Another area not to be overlooked is your insurance coverage.

The gaming market is expected to grow by 9.57% this year.

Packetts, as part of the Jensten group, have access to insurance products from a wider panel of insurers, in conjunction with the support of Jensten Underwriting, and Jensten London Markets which are not available to every broker. This grants a local Yorkshire broker the ability to keep up with the growing demands of a rapidly advancing market. Insurance can sometimes be a last thought with how busy studios are but it’s our mission to highlight the importance of safeguarding your assets.

Covering the Spectrum – What Risks Can Be Managed?

While distributed denial-of-service [DDoS] attacks and hackers often come to mind as risks to a game’s development, the risks to the studio itself are evermore crucial. Studios facing risks akin to other sectors, must be shielded with Liability Insurance in the event of a case being raised against them. In addition to arranging cover for unforeseen events. Long-term dispersion of testing poses a significant risk of contract breaches, particularly when studios conduct alpha testing with their contracted audiences under non-disclosure agreements [NDAs]. A good way to partially mitigate the risk is to hire a trusted game testing service, but the prevalence of insider leaks in the industry has become increasingly common. Potentially straining or damaging production processes.

During the early phases of development, particularly for new intellectual properties [IPs] and studios facing tight budgets and developer crunch time, insurance coverage can be overlooked. However, having insurance can be crucial in mitigating risks such as hardware damage, data loss, IP theft, and unforeseen incidents like fire or flood on the premises. Without adequate coverage, these events could spell the end for a new product. Packetts, as insurance brokers, can work with studios to understand their insurance needs, arranging coverage needed. A collaborative relationship keeping studios safer and easing worries about risks to the business.

Packetts can arrange tailored coverage for:

  • Breach of Contract Insurance
  • Public Liability Insurance
  • Employers Liability Insurance
  • Directors’ and Officers’ Insurance
  • Cyber and Data Loss Insurance
  • Intellectual Property and People Risks Insurance
  • Professional Indemnity Insurance
  • Management Liability Insurance
  • Fidelity Insurance

This tailored approach ensures that studios are equipped to face potential threats. Making informed decisions about risk management is imperative. Having a broker assess these risks is critical for the studio’s continued success.

The Journey from Indie to Triple-A – Navigating Growing Pains

As studios morph from small indie setups to larger entities, risks evolve. The market’s estimated growth of 9.57% this year underscores the significance of anticipating and mitigating these risks. Assuring that the studio has complete insurance coverage throughout is crucial to the longevity of the company. Indie studios frequently encounter challenges akin to those encountered by triple-A companies despite having weaker security in place. Making them much easier to target by cyber-crime. While having a shared passion for games, these studios undergo transformations over time, including the occasional necessity for downsizing. In such instances, Employers Liability Insurance becomes crucial, serving to safeguard the studio in the event of claims. Packetts, drawing from its cross-sector expertise, identifies potential risks that might go unnoticed. This proactive approach is crucial for studios aspiring to reach double or triple-A status. As risks become more complex, Packetts remains a steadfast ally, ensuring studios can thrive amid challenges.

Ensuring a Thriving Gaming Future

Packetts is committed to being the insurance broker of choice for the gaming industry. With £16 million GWP in control and a remarkable 98% retention rate, we hold the Chartered Brokers Status, exemplifying our commitment to excellence. If you seek comprehensive risk management tailored for the gaming industry, contact us at 01274 206 500. Visit our local Yorkshire office at Salts Wharf, Ashley Lane, Shipley, West Yorkshire, BD17 7DB. In an ever-evolving industry, safeguarding your studio’s success is not just a necessity; it’s a strategic imperative. We hope that Packetts can be your partner in navigating your way ahead.





Packetts is a trading name of Jensten Insurance Brokers (Yorkshire & Humberside) Limited, which is authorised and regulated by the Financial Conduct Authority.
Registered address: Salts Wharf, Ashley Lane, Shipley, West Yorkshire BD17 7DB. Registered in England No:00371448.

Featured image courtesy of Packetts

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