Updated Mar 17, 2026 by AEVI
Report · January 1, 2025
Published by AEVI
The guide explains that insurance is a critical safeguard for video‑game development in Spain, where tight schedules, complex technical workflows and the involvement of multiple parties create a range of legal and financial exposures. Its central thesis is that appropriate coverage not only mitigates the impact of unforeseen events but also functions as an indirect prevention tool, protecting both small studios and independent creators from liabilities that could jeopardise a project’s completion and commercial success. Key risks identified include failure to meet delivery deadlines, software bugs, transmission of computer viruses, cyber‑attacks, data‑protection breaches, intellectual‑property infringements, defamation, and malicious acts by employees. Each risk is linked to potential legal consequences such as contractual liability, third‑party compensation claims, regulatory penalties from the Spanish Data Protection Agency, and reputational damage. The guide matches these exposures to specific insurance solutions: Professional Liability Insurance (PLI) and Errors & Omissions (E&O) for contractual and professional errors; Cybersecurity Insurance for hacking, ransomware and data‑loss incidents; Multi‑Risk and General Civil Liability policies for broader operational hazards; and specialised coverage for intellectual‑property disputes, defamation and employee misconduct. The scope is national, focusing on the Spanish video‑game sector and addressing developers of all sizes, from freelancers to larger studios. While the guide does not present original empirical research, it draws on prevailing market offerings and legal frameworks to construct a practical risk‑assessment matrix. Recommendations emphasize engaging insurance brokers to conduct tailored assessments, compare policy terms, and periodically review coverage, with clear procedural steps for application, policy issuance, amendment periods and premium payment. Overall, the guide provides a comprehensive checklist for selecting and maintaining insurance that aligns with the specific vulnerabilities of video‑game projects, underscoring the importance of proactive risk management in a highly competitive and technically demanding industry.
AEV ASOCIACION ESPANOLA DE VIDEOJUEGOS Insurance in the video game sector Guide prepared by Guide prepared by
Contents 1. What is the purpose of insurance in the video game sector? 5 2. Key risks encountered in the video game sector 5 3. Which insurance policies exist for video game development? 8 4. Which insurance should I choose, depending on what I want to protect? 11
AEVI | INSURANCE IN THE VIDEO GAME SECTOR Introduction to the Guide Author: Insurance contracts are found anywhere in life Rafael Fernández (Pérez-Llorca) [email protected] Juan Pablo Nieto (Pérez-Llorca) [email protected] where there is an insurable interest, such as, in this case, the development and exploitation of a video game. Insurance consists of a contract based on an unpredictable future event because it is not known when the risk will occur. This guide will help you understand the contents E of insurance contracts, since they are essential for providing security against risks that could compromise the future of your project by offering adequate coverage that serves as an indirect prevention mechanism. Consequently, insurance is now also associated with gaming and the video game sector, where it can play a crucial role. This guide will also explain the different types of insurance contracts and the risks that each one covers. This is especially important because choosing the right insurance is crucial to cover the riskiest elements of your project. Specifically, this guide will be useful regarding the following: Understanding the importance of insurance contracts: What is the purpose of insurance in the video game sector? Knowing the different types of insurance: What types of insurance cover video game development? Choosing the most appropriate insurance: Which insurance should I take out depending on what I want to protect?
1. What is the purpose of insurance in the video game sector? The development of a video game is one of the most complex phases in the production of this type of media, and that is why insurance plays a fundamental role in ensuring its success. The difficulty of this process leads to the following problems: » Short deadlines that must be met as a result of tight schedules. » Unintended repercussions for publishers, such as those discussed below. » Unexpected compensation obligations that cannot always be met, especially in the case of small companies or independent or even individual developers. 2. Key risks encountered in the video game sector Risk Reason Possible legal consequences Which insurance to take out? Failure to Computer errors or Claims for contractual liability and com- • Professional Liability Insurance meet delivery bugs. mitments made to third parties or for (PLI) deadlines Delays in the pace of financial damage to third parties. • Errors & Omissions Insurance work. (E&O) Transmission File exchange and Claims for pecuniary damage to third • Professional Liability Insurance of computer transmission. parties. (PLI) viruses • Errors & Omissions Insurance (E&O) Data protection Unauthorised intru- Operational expenses. • Cybersecurity Insurance breaches sions (cyberattacks or Claims for reputational or pecuniary • Professional Liability Insurance hacking). damage to third parties. (PLI) Spanish Data Protection Agency penalties. Intellectual The failure to hold Claims by third parties. • Professional Liability Insurance property sufficient intellectual (PLI) infringements property rights from third parties.
rofessional Liability Insurance hacking). damage to third parties. (PLI) Spanish Data Protection Agency penalties. Intellectual The failure to hold Claims by third parties. • Professional Liability Insurance property sufficient intellectual (PLI) infringements property rights from third parties. Infringement Unauthorised ref- Claims by third parties. • Professional Liability Insurance of the right to erences to public (PLI) privacy, honour figures in games or self-image, or extensive use of including their image without defamation permission. and slander Damage Malicious acts by Operational expenses. • Professional Liability Insurance caused by employees. Claims by third parties. (PLI) employees
2025 A. Failure to meet delivery deadlines AEVI Problems that can arise in the development of a video game: Problem Consequence Solution Computer errors or bugs, Involuntary breach of PLI, E&O insurance. delays due to a slow pace contract, claims for conof work. tractual liability. For example, the publisher of a video game spends a lot of financial resources on its promotion. Thus, a delay in its release could lead to substantial economic damage. To mitigate these risks, there are both PLI and E&O insurance. Both forms of insurance cover policyholders in those cases in which a breach of contract has occurred involuntarily, either due to mistakes made by the developers themselves or due to carelessness or negligent acts. Both forms of insurance cover both compensation for non-performance and legal defence costs. B. Transmission of computer viruses The development of a video game is not always carried out by a single company, and the transfer of files is very common. The exchange of files and information may result in the transmission of a computer virus to a third party, leading to: » The virus in question damaging other developers' files or affecting the software; » This would result in damage to a third party due to an error or professional negligence attributable to the developer, and; » As a consequence, an obligation to compensate the injured third party would arise. » To protect against this risk, we recommend taking out one of the abovementioned insurance policies that cover professional errors, X C. omissions or negligence. Unauthorised intrusion
This industry guide, developed by the Spanish Video Game Association (AEVI) in collaboration with legal experts from Pérez-Llorca, serves as a strategic framework for managing risk within the video game development and publishing sectors. The primary thesis emphasizes that insurance is an essential mechanism for ensuring the financial viability of projects, acting as an indirect prevention tool against the inherent complexities of game production, such as tight delivery schedules, technical bugs, and intellectual property disputes. The analysis identifies several critical risk categories specific to the gaming industry, including breach of delivery deadlines, transmission of computer viruses, and unauthorized data intrusions. Key findings highlight that Professional Civil Liability (RCP) and Errors and Omissions (E&O) insurance are the most vital protections for developers, covering involuntary contractual breaches and negligence. Furthermore, the guide underscores the rising importance of cybersecurity insurance to mitigate operational costs and reputational damage resulting from hacking, ransomware, and data leaks, which can trigger significant sanctions from regulatory bodies like the Spanish Data Protection Agency. The scope of the guidance focuses on the Spanish market, referencing local legal standards and regulatory bodies, while covering the entire industry lifecycle from independent developers and freelancers to large publishers. It details specific coverage areas such as intellectual property infringement—protecting against claims regarding music, characters, and concept art—and liability for defamation or the unauthorized use of public images. Methodologically, the guide provides a practical checklist for insurance procurement, advising firms to utilize insurance brokerages for periodic contract reviews and to ensure all operational risks are disclosed to maintain policy validity.
The guide aims to equip video‑game developers and publishers with practical knowledge for building a robust intellectual‑property (IP) portfolio that safeguards creative assets and minimizes infringement risk. It clarifies the legal distinction between copyright‑related rights, which protect artistic and literary expressions, and industrial‑property rights such as patents, trademarks, industrial designs and trade secrets, emphasizing that trademarks and designs are the most relevant instruments for the sector. Key points outline how each component of a game—script, dialogue, soundtrack, character graphics, user‑interface, source code, middleware and databases—can be protected. Copyright arises automatically upon creation and lasts 70 years after the author’s death (or 70 years from disclosure for collective works); registration at the General Registry of Intellectual Property can serve as evidence of ownership. Trademarks require filing with the Spanish Patent and Trademark Office or the EUIPO, granting ten‑year protection renewable indefinitely, while industrial designs protect the visual appearance of GUIs for five‑year terms, renewable up to 25 years. Trade‑secret protection relies on confidentiality agreements and technical safeguards for non‑public information such as storylines or novel mechanics. The guide stresses that, under Spanish law, employees retain initial rights to their creations, so studios must secure written assignments—preferably exclusive, worldwide and lasting until the work enters the public domain—to ensure exploitable rights. Collective works, common in game development, confer ownership to the coordinating developer or publisher. For third‑party content, the document outlines limited exceptions—public‑domain use, statutory limits, and narrowly defined descriptive uses of trademarks—while noting that the EU does not recognise a broad “fair‑use” doctrine. Overall, the document provides a comprehensive, jurisdiction‑specific framework for protecting video‑game assets across Spain and the European Union, guiding stakeholders through registration procedures, contractual safeguards and permissible uses of external material to secure commercial value and legal certainty.
The guideaims to help video‑game publishers, developers and related staff in Spain navigate employment legislation while fostering safe, productive workplaces. It stresses that compliance with the Workers’ Statute, the 2022 labour reform and the Remote‑Working Law is essential to avoid costly legal sanctions and to protect staff from the health‑risk phenomenon known as “crunch.” Key findings highlight the danger of false self‑employment, where workers appear independent but are actually subject to employer control. Spanish courts identify dependency, subordination and fixed remuneration as hallmarks; violations can trigger Social‑Security fines of €3,750‑€12,000 per worker, plus surcharges up to 150 % of unpaid contributions. The guide confirms that indefinite contracts are the default; fixed‑term contracts are permissible only for production‑related needs or to replace absent employees, with a maximum six‑month duration for the former and 90 days per calendar year for the latter. Misusing temporary contracts converts the relationship to permanent status and incurs fines of €751‑€7,500 per affected employee. Remote work must be voluntarily agreed, cover at least 30 % of a worker’s time, and include employer‑funded equipment costing roughly €25‑€35 per month; non‑compliance also attracts fines of €751‑€7,500. Occupational‑risk prevention is mandated under Law 31/1995, with penalties ranging from €45 to €983,736 depending on severity, and requires systematic risk analyses to curb physical and psychosocial harms linked to crunch periods. Additionally, firms must maintain objective daily time‑recording systems, respect the irregular distribution of hours (up to a 10 % pool, notified five days in advance), and implement digital‑disconnection protocols, equality plans for organisations with over 50 employees, and whistle‑blowing channels. Overall, the guide provides a practical checklist for Spanish video‑game companies: verify contract types, assess self‑employment arrangements, formalise remote‑work agreements, enforce occupational‑risk measures, and ensure accurate time‑keeping and compliance with broader digital‑and‑equality obligations, thereby reducing legal exposure and promoting healthier work environments.
Video games and their developers argue that the European Commission’s proposal to revise the Product Liability Directive (PLD) would unjustly broaden liability by treating standalone software, including video games, as generic “products.” The core thesis is that video games are complex cultural works comprising software, music, narrative, graphics and user‑generated content, and therefore should not be subject to the strict, no‑fault liability regime designed for high‑risk physical goods. The position stresses that existing legal frameworks—such as the Computer Programs Directive, the 2001/21/EC Copyright Directive, the Digital Content Directive, the GDPR, and consumer‑rights legislation—already provide adequate protection, while the proposed PLD amendment would create legal uncertainty, overlap, and disproportionate exposure for developers. Key findings highlight the sector’s long‑standing self‑regulation through the PEGI age‑rating system, now used in 38 European countries, and the deployment of parental‑control tools on consoles and other platforms for two decades. Survey data from the Commission’s impact assessment reveal low public support for compensating damages caused by intangible items that do not drive a device, with only 42 % agreeing to such liability for software apps and 48 % for the category that would include video games. The paper notes that the PLD’s definition of “defectiveness” relies on vague concepts such as “reasonably foreseeable misuse,” which could unfairly penalise iterative software development and frequent patching practices. The scope of the argument covers the entire European Union, referencing 27 Member States and the broader digital market. Economic data underscore the sector’s significance: the European video‑games market generated approximately €23 billion in consumer spending in 2021, comprises over 5,100 studios with a combined turnover of €12 billion, and employs around 90 000 people. EGDF represents more than 2 500 developer studios and 45 000 employees across 22 countries. No primary survey was conducted; the analysis relies on existing EU impact‑assessment questionnaires and legal precedents from the Court of Justice of the EU. Conclusions call for the exclusion of video games from the PLD’s definition of “product,” warning that the proposed liability regime could deter innovation, increase litigation risk, and undermine Europe’s digital and cultural future. The paper urges policymakers to retain the current, sector‑specific regulatory architecture and to avoid a one‑size‑fits‑all approach that fails to distinguish between high‑risk physical products and interactive digital entertainment.