Michigan Video Arcade Insurance

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Michigan Video Arcade Insurance Policy Information

MI Video Arcade Insurance

Michigan Video Arcade Insurance. Video arcades - also called amusement arcades - are facilities that provide a broad range of arcade games and related offerings.

Video arcades offer coin or token operated amusement devices to patrons. These devices can include kiddie rides, skill-based games, or prize-based games simply subject to chance. The amusement devices may be owned or rented from others. The arcade may have a snack bar or gift shop, or offer space for special events such as birthday parties.

These venues typically feature classic arcade games, pinball machines, claw machines, air hockey tables, and billiard tables.

More recent innovations mean that video arcades also often often exciting new content such as virtual reality gaming and venues for esports teams, meanwhile.

This fast-paced branch of commerce is always welcoming new games, and those who own and operate video arcades will be deeply familiar with the fact that running a business always brings risk and uncertainty. That is why it is crucial to consider what types of Michigan video arcade insurance needed to protect the business from major perils.

Discover more about the kinds of coverage an amusement arcade requires in this brief guide.

Michigan video arcade insurance protects your amusement business from lawsuits with rates as low as $57/mo. Get a fast quote and your certificate of insurance now.

Why Do MI Video Arcades Need Insurance?

Video arcades may be venues visitors seek out for relaxation or friendly competition, but these businesses also face numerous risks, just like any other company.

Both threats common to all commercial ventures and some specific to this branch of commerce can have devastating financial consequences - some of such a magnitude that, without the right insurance on your side, it would be "game over" for your arcade.

Your video arcade could be struck by an act of nature like an earthquake, fall victim to burglary or serious vandalism, or suffer from the accidental breakout of a fire, to name some examples. In the process, your building and the valuable gaming equipment inside could be severely damaged.

In addition to the related repair and replacement expenses, it is extremely likely that the arcade will be subject to costly business interruptions. Liability risks represent another serious threat to video arcades.

If an employee were to suffer an injury while at work, a customer to get hurt on your premises, or a machine you rent be damaged beyond repair, the losses can again be very significant.

A business that has taken the time to invest in Michigan video arcade insurance coverage, however, can overcome these and other perils - so that it can once again thrive and continue to bring joy to the community.

What Type Of Insurance Do Michigan Video Arcades Need?

The process of obtaining the right insurance can be complex. The location and size of your video arcade, the type of equipment it offers and whether those machines are rented or owned, and its number of employees are just some of the many factors that influence what kinds of insurance a video arcade will need to carry.

Just like each video arcade is unique, it also faces a different set of risks. That is why it is essential to consult a commercial insurance broker; with insights into your specific risk profile, they can help you cover all your bases.

However, some of the most important kinds of Michigan video arcade insurance include:

  • Commercial Property - This type of coverage offers protection in case your facility is impacted by perils such as theft, vandalism, fire, or earthquakes. It covers repair or replacement costs relating to your physical building, but also the assets inside it.
  • Commercial General Liability - If a visitor gets injured on your property and files a lawsuit attempting to hold you responsible, legal expenses can accumulate rapidly. The same holds true if a piece of equipment you rent is damaged. Business or commercial general liability insurance covers your attorney fees and any settlement costs.
  • Workers' Compensation - This type of Michigan video arcade insurance funds the medical bills and any lost wages for employees who are injured at work. Long-term occupational health conditions, such as those resulting from repetitive stress injury, are also covered.
  • Equipment Breakdown - Should important equipment, such as an arcade machine you own, malfunction and require urgent repair or replacement, this type of coverage can help you bridge the cost.

These key types of Michigan video arcade may not cover all eventualities. If your company owns vehicles, for example, it will require commercial auto insurance as well. If it stores customer data electronically, or runs a website, cyber insurance is also going to be needed.

Talk through all the risks your video arcade could be exposed to with a skilled commercial insurance broker to get the full picture - and complete peace of mind.

MI Video Arcade's Risks & Exposures

Premises liability exposure is high due to the number of visitors to the premises and the type of operation, which tends to attract children and youth. Public and life safety code compliance is necessary. Good housekeeping is key to preventing trips, slips, and falls. Flooring should be in good condition.

The number of exits should be sufficient, well marked, and have backup lighting in case of power failure. Steps must have handrails and be in good repair. Parking areas should be maintained free of snow and ice.

Background checks, including criminal records, should be conducted on all employees. The arcade may present an attractive nuisance hazard when not in use. There must be adequate security to prevent unauthorized entry.

Personal injury exposures are from assault and battery, discrimination, false arrest or unlawful detention.

Products liability exposure comes from the sale of new and used or reconditioned machines, prizes awarded for skill and chance games, and serving of food and drink. The use of faulty components or improperly repaired appliances can cause electrical problems that could result in fire or other property damage. Employees should be trained in proper repair procedures.

Workers compensation exposure includes electrical shocks or burns, hernias or back sprains from lifting, slips and falls, foreign objects in the eye, or collisions while driving. Security or attendants may be injured by altercations with unruly patrons or during hold-ups.

Property exposure is moderate. Ignition sources include electrical wiring, heating, and air conditioning systems, and overheating of electronic equipment. All electrical wiring must meet codes and be adequate for the operation.

Repair operations may include the use of flammable cleaning solvents, soldering, electrical wiring, and repair of plastic cabinets.

Flammables and combustibles need to be used away from soldering operations. Solvents should be properly stored in a fireproof cabinet. Cooking operations must be properly controlled.

Video machines can be targets for theft, and vandalism is a key concern as the facility's operations attract children and youth. The number of employees or attendants on duty is important. If any virtual reality machines are available, they should be placed where workers can supervise activities.

Appropriate security controls should be taken including physical barriers to prevent access to the premises after hours and an alarm system that reports directly to a central station or the police department. If there is a snack bar, loss of power can result in spoilage loss to food.

Equipment breakdown exposures are extensive due to the number of electronic machines used in operations. Damage to a key attraction which cannot be repaired quickly due to limited availability of parts may result in a substantial loss. All equipment must be maintained in good condition and documented.

Crime exposure is due to employee dishonesty and money and securities. Background checks should be conducted on all employees handling money. There must be a separation of duties between persons handling deposits and disbursements and handling bank statements.

All machines should use tokens only. One individual must control the token machine, and a tracking device should be in the machine to correlate cash receipts to tokens given. Money should be removed and deposited during the day to prevent a buildup of cash.

Inland marine exposure is generally limited to commercial articles for the game and vending machines while being transported and valuable papers and records for contracts and suppliers' information. The contract with vending companies may require the arcade to provide coverage for leased machines.

There may be accounts receivable if the arcade bills for services, bailees if repair is performed on customers' goods, or computers.

Business auto exposure may be limited to hired non-owned for employees or volunteers running errands if operations are only at one location. If there are owned vehicles, they must be maintained on a regular basis with all service documented.

MVRs must be acceptable and ordered regularly on all drivers. Machines transported between arcades must be properly tied down to avoid shifting.

Michigan Video Arcade Insurance - The Bottom Line

To discover the specific types of Michigan video arcade insurance policies you'll need and how much the premiums are, consult with a skilled broker that is experienced in commercial insurance.

Michigan Economic Data And Business Insurance Requirements

Business owners who are interested in establishing operations Michigan must have a thorough understanding of the state's economy. They should also familiarize themselves with any regulations and limits that state may have in place for commercial insurance.

Made In Michigan

Any entrepreneur who is thinking about starting a business in the Great Lake State first needs to determine if it's a feasible location for business operations. As such, it's important to have a keen understanding of pertinent details regarding the economy of Michigan, in addition to the types of insurance coverage that are mandatory for corporations that operate within the state.

Economic Trends for Businesses In Michigan

After a long period of stagnant job growth in the early part of the 21st century, MI has been experiencing a steady increase in employment gains. Between 2009 and 2018, the state has enjoyed a period of uninterrupted job growth; the longest stretch of job growth since World War II. According to economists at the University of Michigan. While there has been a slight decline in the rate of job growth, job creation continues and forecasters say will continue for the next two years, into 2021.

In 2018, an estimated 55,200 jobs were created; in 2019, it's expected that 35,800 jobs will be created, and in 2020, economists believe that there will be a total of 39,300 jobs created in Michigan. While that rate of growth is 1.9 percent slower than the job growth rate between 2011 and 2016, it is still a steady increase overall. In total, approximate 683,200 jobs will be created in MI between 2099 and 2020; almost four out of the five jobs that were lost during the early part of the 21st century will be recovered.

While the unemployment rate has steadily improved, it is still above the national average. In March of 2019, the national unemployment rate was 3.8 percent, while in the state of Michigan, it was 4.0 percent. Mid-Michigan has experienced the largest growth rate in the state, and according to forecasters, it looks like that trend will continue, moving forward. Industries that are expected to see the most growth include:

  • Energy, due largely to research and development in clean energy
  • Food and agriculture
  • Water
  • Transportation and mobility
  • Healthcare industry
  • Information and technology

In the state of MI, business owners are not legally required to carry liability insurance; but most entrepreneurs opt to invest in a General Liability or Business Owner's Policy (BOP). A commercial auto insurance policy is also required for any businesses that use motor vehicles to conduct any aspect of their business operations. Workers' compensation insurance is also required for any businesses with non-owner employees. While the following forms of coverage are not required, depending on the type of business you operate, they are recommended:

  • Data breach insurance
  • Business income insurance
  • Commercial Umbrella insurance

Additional Resources For Arts & Recreation Insurance

Read up on small business arts and recreation commercial insurance.


Arts And Recreation Insurance

Commercial insurance policies for arts, entertainment and recreation are specialized policies that protect against the unique risks that arts and recreation businesses face.

Performing artists and companies, entertainers including musical groups, theatre groups, comedians and more, writers, performers, photographers, videographers, DJ's and so many other types.

Professional liability coverage (errors and omissions) is needed in these cases to protect their financial interests due to mistakes, errors or omissions by these professionals in doing their jobs. Fr example - a bride and groom did not like the way their wedding photos turned out.

Or a wedding planner might plan a lavish wedding, but the bride's parents who are paying for it did not like the way it went. There is a lot of gray areas with arts, and you need to be protected if your clients don't agree with you that your work was what the agreed to.

If your business is involved with children, you need to review your coverages very carefully so certain important protections are not excluded. Abuse and molestation insurance might be needed to fully protect yourself in this instance.

Minimum recommended small business insurance coverage: Business Income with Extra Expense, Employee Dishonesty, Money and Securities, Accounts Receivable, Commercial Articles Floater, Computers, Valuable Papers and Records, General Liability, Employee Benefits Liability, Umbrella Liability, Hired and Non-owned Auto Liability & Workers Compensation.

Other commercial insurance policies to consider: Building, Bailees Customers Floater, Money and Securities, Cyber Liability, Employment-related Practices Liability, Business Auto Liability and Physical Damage and Stop Gap Liability.


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Also find Michigan insurance agents & brokers and learn about Michigan small business insurance requirements for general liability, business property, commercial auto & workers compensation including MI business insurance costs. Call us (313) 344-7177.

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