The Problem – Uncovered content risks

General liability and professional policies usually exclude intellectual property and media claims. Standard E&O focuses on performance failures, not on unauthorized use of copyrighted or trademarked content. For example, if a game includes an unlicensed logo from another franchise, or if a streamer plays copyrighted music during a live broadcast, traditional policies provide no coverage for resulting claims. AI usage complicates this further: if an AI tool creates a character based on a protected work, the policy may not clearly cover the infringement. As a result, media-related disputes often fall outside basic insurance terms.

Example: A popular live streamer performed a custom song during a gameplay stream. The copyright owner later filed suit for infringement. With no specialized media cover, the streamer and platform faced legal costs without a designated insurance solution.

The Solution – Dedicated Media & IP Coverage

To manage these exposures, a tailored media and IP insurance program should include:

  • Intellectual Property (IP) Insurance: Protects against claims of copyright, trademark or patent infringement. This coverage funds legal defense if your game or content is accused of copying others’ IP. For instance, if a game’s soundtrack or asset is alleged to contain stolen content, IP insurance pays defense costs and settlements.
  • Media Liability Insurance: Covers claims of libel, slander and invasion of privacy arising from media content. If a streamer or game developer is sued for defamation (e.g., a game character based on a real person without consent) or privacy breach (unauthorized use of someone’s image), media coverage handles legal fees and damages.
  • Advertising Liability Insurance: Protects against violations of publicity rights and false advertising claims. This includes unauthorized use of a celebrity’s likeness in marketing, or misleading promotional content. If your game’s ad campaign unintentionally infringes a personality’s rights, this coverage addresses the claim.
  • AI Content Liability Extension: Addresses the emerging risk of AI-generated content. If your project uses AI to create art, music or voice, this extension helps cover claims that the AI output infringed on third-party IP or otherwise caused harm. It provides legal support in a rapidly evolving area.

Typical Claims Scenarios

  • Scenario 1: A streamer’s on-demand video includes background music by a popular artist. The copyright holder sues the streamer and gaming platform for infringement. Media & IP insurance covers the defense costs and any settlements or judgments.
  • Scenario 2: A game developer includes a character that closely resembles a real public figure without permission. The figure files a right-of-publicity or defamation suit. Media liability insurance funds the legal defense and resolves the claim.
  • Scenario 3: An in-game advertisement uses a knock-off logo that infringes another company’s trademark. The trademark owner sues. IP insurance steps in to cover legal costs and any licensing fees or settlement required.
  • Scenario 4: A gaming studio uses an AI art generator trained on copyrighted images to create character art. Later, a collection of original artists claim copyright infringement. A customized AI content liability clause in the policy helps pay for the defense and settlement process.

Insurance by Business Model

  • Gaming Studios and Publishers: Develop their own original content (art, music, story). They face IP claims if assets inadvertently infringe existing works. They need strong IP insurance and media coverage for promotional content.
  • Streamers and Content Creators: Broadcast gaming content with commentary. They face copyright claims (music, video clips) and personal content risks. Media/IP policies are crucial, covering content published on platforms like Twitch and YouTube.
  • Social Gaming Platforms: Include user-generated content (UGC) and forums. Companies can be held liable for IP or defamatory content posted by users. Media liability insurance should include coverage for UGC moderation failures.
  • AI Development and Game Tech: Companies using AI to generate graphics, music or code. They need endorsements clarifying AI-related risks under IP coverage. Policies should account for reliance on AI tools and the potential misuse of training data.
  • Advertising & Sponsorship: Games often feature ads or sponsorship tie-ins. Risks include misleading ads or violation of sponsors’ IP. Advertising liability coverage protects against these errors.

Pro Tip

Always obtain licenses or clearances for all third-party content (music, video, voice recordings) before use. Include indemnity clauses with content creators and advertisers to transfer IP risk contractually. For AI content, keep records of training data sources and avoid using unauthorized material for training.

When negotiating insurance, clearly define the scope of “media content” and ensure your policy covers online distribution (streaming, downloads, social media). Consider adding a separate endorsement for AI-generated works. Underwriters will ask if your company follows industry best practices (e.g., using only licensed assets, vetting user content), so be prepared to demonstrate your content governance process