Arcade Insurance

Yes, it's possible to buy one-day special event insurance or short-term liability insurance. For instance, you could buy single-event insurance for a corporate party, or seasonal insurance for a virtual reality (VR) experience centered around a specific holiday.

However, there are several reasons to opt for year-round coverage instead:

• It's expensive to stop and start coverage. Arcades that cancel their policies may see increased premiums or have difficulty restarting coverage, as it's a red flag for insurers.
• It may cost more in the long run. Going without insurance leaves you exposed to costly risks. For example, a beach arcade could be damaged by a fire or storm during the off-season when it's closed and uninsured.
• Some policies won't provide coverage. Occurrence-based policies like general liability continue to cover incidents that happened when you were insured, but that's not the case for claims-made policies like professional liability insurance, which differ in several ways. For protection against lawsuits filed after an event occurs, you'll need to keep your professional liability coverage active.

Some of the top factors that affect the cost of arcade insurance include:

• Annual revenue: In general, businesses that earn more revenue are associated with costlier claims, which means they pay more for insurance.
• Number of employees: A bigger workforce means an increased risk of accidents and injuries, which raises the cost of general liability, workers' comp, and similar policies.
• Equipment value: It'll cost more to insure expensive equipment, such as high-end racing simulators, VR stations, and luxury pinball machines.
• Location: Localized factors such as crime rate, healthcare costs, foot traffic, risk of natural disasters, and property values can impact your insurance premiums.
• Security and risk management: Insurance companies may offer lower rates to arcades that have tamper-resistant machines, restricted access, and advanced camera systems.
• Policy limits and deductibles: You can save money on insurance by opting for lower limits or higher deductibles on your policies, but make sure it's enough to cover a potential claim.
• Claims history: An arcade that has filed insurance claims in the past will cost more to insure than one with a clean claims history.

Arcade owners often invest in the following insurance products to protect against unexpected out-of-pocket costs:

• Commercial property insurance covers your building, arcade machines, cash registers, and other property at your business location in the event of a fire, storm, or burglary.
• Inland marine insurance protects items in transit and used off-site, such as arcade games brought to a tournament venue.
• Business interruption insurance helps your arcade recover from a forced closure due to a fire or other covered property claim. It's also called business income insurance.
• Equipment breakdown insurance protects against financial losses caused by the unexpected failure of an arcade machine.
• Commercial umbrella insurance, similar to excess liability insurance, provides coverage when your general liability, commercial auto, or employer's liability insurance reaches the limit on a claim.
• Liquor liability insurance covers legal costs if a customer becomes intoxicated at your arcade and goes on to harm someone or damage their property. It's essential if you own a barcade or otherwise sell or serve alcohol.

Our agents can help you find any specialty insurance policies you may need and answer any questions about coverage.