No matter what the season is, people will always look for a place to unwind.  And speaking of someplace to do just this, most will look for the fun and merry atmosphere of amusement arcades. 

As an arcade owner, you know that the higher the number of visitors, the higher the chances of facing a lawsuit. This is why it is essential to get amusement arcade insurance that protects you against such claims. Read on as we discuss what amusement arcade insurance entails and why you should get it. 

Amusement Arcade Liability Insurance

Amusement arcade insurance incorporates a wide range of policies that protect your business against lawsuits. Should something happen to your business, this insurance policy protects you. It is important to note that the leisure sector has several policies that an amusement arcade could use. Most of these policies are tailored and meet the needs of your amusement arcade business.

Different factors influence the level of insurance cover you need. However, it is important to know some of the areas amusement arcade insurance covers. They include:

Public Liability Insurance for Amusement Arcades

Public liability insurance is one of the most important policies for your amusement arcade business. This policy ensures you have sufficient cover for claims arising from injury or property damage, just like in zoo insurance. 

These claims could come from members of the public or any other third party. When a guest accidentally hits another car in the parking lot due to a lack of clear parking signs, the victim could sue you for damages. In that case, this insurance policy will cover the costs. 

Employer's Liability Insurance for Amusement Arcades

This is a legal requirement if you have employees in your amusement arcade business. When one of your employees is injured or gets sick due to bad working conditions, they can file a claim against you. Amusement arcade insurance helps cover against such claims. It also covers medical expenses should the victim be taken to the hospital. 

Loss of License Insurance for Amusement Arcades

To operate an amusement arcade business, you must have various licenses. For instance, you need a license to operate various machines in the park and offer some services. Besides, some states need you to have a gaming license to operate. Should you lose any of these licenses, your business suffers a significant blow. 

Amusement arcade insurance protects you in such cases. The insurance company will pay what you usually earn from the business until you get back your license. It is important to note that the insurance company will only pay if the loss isn't caused by intentional acts. 

Building and Contents Insurance

It is crucial to protect your commercial premises and other contents. Being an amusement arcade business owner, you know that the equipment and machinery used are costly. In case the equipment is damaged, you need to replace it without interfering with your working capital. 

This insurance policy protects you against any structural damage due to unforeseen incidents like fires and vandalism. By doing so, it protects your business from financial losses. You will be able to replace damaged or stolen equipment without breaking the bank

Why Have Amusement Arcade Insurance

The public poses the main risks in an amusement arcade. Short-tempered customers or over-zealous children can cause significant damage to your costly pieces of machinery. 

Apart from the risks posed by the public, there are other standard considerations such as theft and fire. Any of these cases could result in severe financial losses that put your business at risk of closure. You will spend a lot of money on repairs and replacements that damage your finances. 

Given that an amusement arcade is a place where people have fun, a child could sustain serious injuries when playing at an amusement park. As much as injuries are not very common at amusement arcades, they can be very costly when they happen. 

The parent of the injured child could sue you for damages and demand that you pay. Without a comprehensive insurance cover, you could end up spending a lot of money dealing with such cases. This is another reason why you should consider getting amusement arcade insurance.

Like any other business, amusement arcades also face the possibility of legal action due to various reasons. For instance, if a guest sustains property damage while at the arcade, they could sue your business. 

When a visitor trips and falls, damaging his highly valuable wristwatch, he could sue you and demand that you compensate. This is more likely to be the case when an accident is caused due to poor structures. Keep in mind that  these claims are costly.

Luckily, just like playground insurance for playgrounds, amusement arcade insurance protects you against such losses and helps ensure your business remains afloat. It also helps protect your business reputation in case of damaging lawsuits.

Related: 

• Golf Course Insurance
• Dance School Insurance

Amusement Arcade Insurance Cost

The average amusement arcade insurance cost is $46 per month or $550 per year for a $1 million general liability insurance policy. While the average cost could be affordable, you should know that various factors affect the cost of this insurance policy.

The size of your amusement arcade business is one factor that affects the cost of insurance. If you run an established business with hundreds of visitors daily, you will have to pay more for insurance. This is the case because larger businesses face higher risks than smaller businesses. In addition, the type of insurance policy you choose could also determine the total cost. 

Some policies cost more than others due to what they cover. If you want a comprehensive insurance cover, you will have to spend more on insurance. Lastly, the number of employees in your amusement arcade business also plays a vital role in determining the total cost. If you have hundreds of employees, you need a comprehensive insurance policy that could cost more.