Are violent video games uninsurable?

A Seattle-area studio says it was refused insurance by several carriers due to the violent nature of its content.

Insurance News

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Abstract concepts like reputation loss and trade secrets top most insurance industry gurus’ lists of uninsurable risks, but…violent video games?

That’s what one Seattle-based video games developer is saying after he received an email from his insurance broker apologizing for being unable to find a carrier willing to underwrite the product liability insurance studios must have for their products.

“We have made some phone calls and, unfortunately, we do not have a market that will offer a premium proposal for your operations,” the insurance broker wrote. “This is due to the violent nature of the games you are producing.”

The refusal came as a “big shock” and “delayed some major bizdev stuff until I got it sorted,” said Christian Allen of independent developer Serellan.

Allen and his business was later able to find a policy after working with a broker dealing in more hard-to-place risks, but the issue brings up an interesting view of the insurance market for video games.

Though somewhat dated, violent video games have historically been blamed for instances of real-life violence. Insurers have been forced to defend themselves in product liability suits arising from mass shootings such as the ones that took place at Heath High School in Paducah, Kentucky and at Columbine High School in Littleton, Colorado.

Both suits were dismissed, but defense costs mean insuring violent video games requires a special approach.

Serellan’s most recent release was Takedown: Red Sabre, a tactical shooter game that launched in September 2013 for PC and in February of this year for Xbox 360. The game was successfully funded on Kickstarter.

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