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Company insurance is intended to safeguard the financial assets of a business owner and is a necessary investment for an arcade.

Company insurance is intended to safeguard the financial assets of a business owner and is a necessary investment for an arcade.

This article will discuss the primary insurance coverage for arcades, general liability insurance, as well as additional products that are appropriate for this industry.

Arcade General Liability Insurance

Every firm, regardless of sector, has risks that should be insured. General liability insurance is the most frequent and comprehensive form of coverage that company owners purchase.

General liability insurance covers the following risks:

Physical harm

Damage to property

Medical expenses

Legal defence and decision

Personal and commercial harm

While general liability insurance is not legally needed for companies, operating without it is exceedingly dangerous. If your company is sued, you might face costs in the hundreds of thousands of dollars (or more). The only way to avoid this sort of catastrophe from destroying your organisation is to have an adequate general liability insurance coverage in place to assist pay for these losses.

Common Situations That Arcade General Liability Insurance May Cover

Trip and fall accidents are the most prevalent sort of accident that occurs in an arcade. If one of your clients is harmed while playing laser tag or racing from one game to the next, you might be held accountable for damages. You may safeguard your consumers in the case of an accident involving your specific arcade equipment by obtaining general liability coverage. <\/em><\/p>

Example 2: While many company owners do not perceive their parking lot to be a critical region, it is really a frequent accident location. There is a high risk of an accident occurring as visitors attempt to weave past other cars, motorcycles, and pedestrians. Furthermore, if the accident was caused by inadequate maintenance, general liability insurance might assist pay the cost of damages. <\/em><\/p>

Example 3: Arcades are a popular gathering place for individuals of all ages. However, bear in mind that some players are quite competitive and may grow furious or disappointed if things do not go their way. When consumers rattle a machine or losing their rage in an arcade, there is a higher risk of them injuring themselves or others. <\/em><\/p>

Of course, this is not an entire list of risks covered by a general liability insurance policy, and certain situations may result in a specific peril not being covered. To minimise coverage gaps, it’s always better to speak with your agent about the terms of your policy.

General Liability Insurance Cost

The typical arcade in the United States pays between $300 and $800 per year for $1 million in general liability insurance.

The cost of your coverage will be determined by a number of variables. Among them are your:



Employees’ number

Per-occurrence restriction

The overall aggregate limit

You may be able to get general liability insurance at a lower cost if you buy it as part of a business owner’s policy (BOP) rather than as a separate policy. A business interruption policy (BOP) is a more complete option that covers numerous types of coverage, such as business interruption and property insurance.

Other Types of Arcade Coverage Required

While general liability insurance is the most crucial, there are various different types of coverage to be aware of. Other forms of insurance that all arcades should have are as follows:

Insurance for Business Interruption

Arcades are not just places for fun and games, but they also house a variety of expensive speciality equipment. If this equipment is damaged or destroyed in an event, you may lose your business revenue. You may assist to cover the loss of business revenue that you will experience when you cease operations to repair or replace your equipment by purchasing business interruption insurance.

Compensation for Workers

Workers’ compensation insurance is another vital kind of insurance that can safeguard your staff. In reality, several states mandate workers’ compensation coverage for any firm with part-time or full-time employees. This sort of insurance is intended to pay your workers’ salaries and medical costs if they get ill or injured on the job.

Coverage Options for Some Arcades

In addition to the policies listed above, your Arcade may need other forms of coverage based on specific features of your activities. Some of them may not apply to you, so be sure to ask your agent whether policies are appropriate for your company.

Commercial Umbrella Insurance

In today’s environment, even small firms are vulnerable to accidents and acts that might result in huge liability judgements being levied against them. While your general liability coverage will protect you in the majority of these circumstances, an umbrella insurance adds an additional layer of protection on top of any other policies you may have in place. This is particularly useful when the damages caused by an occurrence exceed your basic insurance limitations.

Insurance for Data Breach

Many arcades have repeat customers who like to retain payment information on file. If you run a loyalty programme or store sensitive customer information on your computer system, your customers’ personal and financial information may be vulnerable to a cyber assault. You may safeguard your company and consumers against a system breach that results in stolen data by purchasing data breach insurance.

Additional Security Measures for Your Company

Although investing in company insurance is simple (and necessary), it should not be your first line of defence. Yes, insurance will reimburse your company for cash losses incurred as a result of an occurrence, but it is much preferable to avoid losses altogether.

With this in mind, here are a few steps you can take to better secure your company:

Make use of legally binding contracts and other business agreements. (We provide free templates for several of the most often used legal forms.)

To safeguard your personal assets, form a limited liability company (LLC) or a corporation. (To discover how to incorporate an LLC or company in your state, see our step-by-step tutorials.)

Keep your company licences up to date.

Streamline the internal procedures of your company. This will eliminate unneeded variables from routine activities and establish a secure, consistent environment in which to do business.

If your company is an LLC, you should check into LLC insurance.