Video Arcade Insurance Policy Information
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 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.
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.
Below are some answers to commonly asked video arcade insurance questions:
- What Is Video Arcade Insurance?
- How Much Does Video Arcade Insurance Cost?
- Why Do Video Arcades Need Insurance?
- What Type Of Insurance Do Video Arcades Need?
- What Does Video Arcade Insurance Cover & Pay For?
What Is Video Arcade Insurance?
Video arcade insurance is a type of insurance policy designed to protect arcade owners against financial loss or liability arising from various risks associated with operating a video arcade.
Video arcade insurance typically includes coverage for property damage, theft, liability, and business interruption. For example, if a customer slips and falls on the arcade premises, the liability coverage may pay for the resulting medical expenses and legal fees. If there is a fire or natural disaster that damages the arcade property, the property coverage may pay for repairs or replacement.
In addition to these standard coverages, video arcade insurance may also offer specialized protection for arcade-specific risks, such as damage to arcade machines, loss of income due to game malfunctions, or cyber liability for online games.
Overall, video arcade insurance can provide arcade owners with peace of mind and financial protection in the event of unexpected losses or liabilities.
How Much Does Video Arcade Insurance Cost?
The average price of a standard $1,000,000/$2,000,000 General Liability Insurance policy for amusement video arcades ranges from $57 to $79 per month based on location, size, revenue, claims history and more.
Why Do 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 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 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 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 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 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.
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.
What Does Video Arcade Insurance Cover & Pay For?
Video arcades may face lawsuits for a variety of reasons, such as:
Personal injury claims: Customers may file a lawsuit against a video arcade if they are injured while playing a game. For example, a customer may trip over a loose carpet or wire, or may suffer an injury from a malfunctioning game.
Insurance coverage: General liability insurance can protect video arcades from personal injury claims. This type of insurance can cover the cost of legal fees, medical expenses, and any damages awarded to the plaintiff.
Property damage claims: Customers may also file a lawsuit against a video arcade if their property is damaged while on the premises. For example, a customer may claim that their phone was damaged due to water leakage from a game.
Insurance coverage: General liability insurance can also protect video arcades from property damage claims. This type of insurance can cover the cost of repairs or replacement of the damaged property.
Copyright infringement claims: Video arcades may face lawsuits for copyright infringement if they use copyrighted materials without permission. For example, a video arcade may use a copyrighted image or music in a game without obtaining the necessary licenses.
Insurance coverage: Intellectual property liability insurance can protect video arcades from copyright infringement claims. This type of insurance can cover the cost of legal fees and damages awarded to the plaintiff.
Cyber liability claims: Video arcades may face lawsuits for cyber liability if they suffer a data breach that exposes customers' personal and financial information.
Insurance coverage: Cyber liability insurance can protect video arcades from cyber liability claims. This type of insurance can cover the cost of legal fees, regulatory fines, and any damages awarded to affected customers.
In all of these scenarios, insurance can help video arcades pay for the legal fees, settlements, or damages that may result from a lawsuit. It's important for video arcades to work with an experienced insurance provider to ensure they have the appropriate coverage for their unique needs.
Commercial Insurance And Business Industry Classification
- SIC CODE: 7993 Coin-Operated Amusement Devices
- NAICS CODE: 713120 Amusement Arcades
- Suggested Workers Compensation Code(s): 8017 Store - Retail NOC
Description for 7993: Coin-Operated Amusement Devices
Division I: Services | Major Group 79: Amusement And Recreation Services | Industry Group 799: Miscellaneous Amusement And Recreation
7993 Coin-Operated Amusement Devices: Establishments primarily engaged in operating coin-operated amusement devices, either in their own or in other places of business. Such amusement devices include juke boxes, pinball machines, mechanical games, slot machines, and similar types of amusement equipment. Amusement (including video game) arcades and parlors are also included in this industry.
- Amusement device parlors, coin-operated
- Amusement machines, coin-operated: operation of
- Arcades, amusement
- Gambling establishments primarily operating coin-operated machines
- Gambling machines, coin-operated: operation of
- Juke boxes, operation of
- Mechanical games, coin-operated: operation of
- Music distribution systems, coin-operated
- Pinball machines, operation of
- Slot machines, operation of
- Video game arcades
Video Arcade Insurance - The Bottom Line
To discover the specific types of video arcade insurance policies you'll need and how much the premiums are, consult with a skilled broker that is experienced in commercial insurance.
Additional Resources For Arts & Recreation Insurance
Read up on small business arts and recreation commercial insurance.
- Amusement Parks
- Archery Ranges
- Athletic Fields
- Billiard And Pool Halls
- Bowling Alleys
- Cave Tours
- Dance Studio
- Disc Jockey DJ
- Drive-In Theaters
- Entertainers And Performers
- Event Planning
- Fairs And Fairgrounds
- Film Production
- Fine Art
- Guides & Outfitters
- Handball & Racquetball Courts
- Horse & Dog Racetracks
- Indoor Sports Complexes
- Interior Decorator
- Interior Design
- Motorsports Racetracks
- Photo Booth
- Recording Studio
- Recreation Centers
- Riding Stables
- Roller Sakting Rinks
- Shooting Ranges
- Skeet & Trap Shooting Ranges
- Ski Resorts
- Talent Agency
- Tennis Centers
- Video Arcades
- Wedding And Special Event
- Specialty Arts And Antiques
- Specialty Clubs And Leisure Time Activities
- Specialty Entertainment
The arts and recreation industry is a vital part of our society and culture, providing entertainment and enjoyment for people of all ages. However, as with any business, there are inherent risks and potential liabilities that can arise. This is where insurance comes into play.
One of the main reasons the arts and recreation industry needs insurance is to protect against financial losses due to accidents or injuries. For example, if a performer is injured while rehearsing or performing, their medical bills and lost wages could be significant. Without insurance, the cost of these expenses could potentially bankrupt a small arts organization.
In addition to protecting against accidents and injuries, business insurance can also cover damages or losses due to weather events, natural disasters, and other unexpected circumstances. For example, if a theater is forced to cancel a performance due to a power outage or extreme weather, insurance can help cover lost income and expenses.
Another important aspect of commercial insurance for the arts and recreation industry is liability coverage. This type of insurance can protect against legal claims and lawsuits if someone is injured or becomes ill while attending an event or using facilities. For example, if a patron slips and falls at a theater, they may file a lawsuit against the venue for damages. Liability insurance can help cover the costs of legal fees and any settlement or judgement.
Overall, the arts and recreation industry needs insurance to protect against financial losses and legal liabilities that can arise in the course of business. Without commercial insurance, small arts organizations and recreational facilities could be vulnerable to financial ruin in the face of unexpected events or accidents.
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.