Amusement Arcade Liability Insurance
Amusement arcades can expose patrons to numerous dangers. A proof of this is the fact that amusement arcades have to comply with requirements and follow rules to do business.
There’s no need for insurance to get an arcade business license. All the authorities want to see is an approved premises approval from the fire department, a review from the council board and member council, and applicable business certificates.
Nonetheless, not having insurance can be quite problematic. Insurance acts as the first wall of defense against the common problems amusement arcade owners face such as:
Amusement arcade liability insurance guards against personal injury claims by providing a basic general liability coverage. General liability provides $1 million up to $2 million to small arcade businesses for the legal fees and settlements of personal injury lawsuits. On the other hand, big amusement arcades can get up to more than $5 million.
Prolonged use and exposure of arcade video game machines can result in physical injuries and mental disorders. An amusement arcade isn’t suable for any mental disorders a regular might develop. However, the law is clear about the liability of the owner for any physical injuries of the customer.
Physical injuries that customers may sue an amusement arcade for are trigger thumb, carpal tunnel syndrome, eye strain, and tennis elbow. The table below outlines the cost of settlement for these injuries in a lawsuit, which general liability insurance covers:
| Type of Injury | Settlement Cost |
| Eye strain | $31,000 |
| Carpal tunnel syndrome | $81,000 |
| Trigger thumb | $38,382 |
| Tennis elbow | $27,000 |
General liability in amusement arcade insurance doesn’t only answer personal injuries. It will also answer property damage lawsuits an amusement arcade might face. Most property damage lawsuits ended with amusement arcades paying a minimum of $5,000 to the plaintiff.
Protection, which liability insurance provides to amusement arcades, initially comes as a basic general liability coverage. However, it doesn’t end here. General liability can be paired with other coverages to cover risks aside from customer personal injuries and property damage.
Commercial Property Insurance for Amusement Arcades
General liability will not cover the destruction of the amusement arcade’s building and the objects inside. That’s why those, who ran arcades for many years, recognize the importance of commercial property insurance.
Everything inside amusement arcades use electricity. Electrical devices can go haywire. Ultimately, electrical device malfunctions can result in fires. Experts estimate the total cost of fires in the United States to be at $328.5 billion and the cost for repairing fire damages amount to $98,000 minimum per affected individual.
Commercial property insurance provides a $75,000 minimum amount payable to the policy holder. It covers electric-related fire breakouts caused by:
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Unclassified electrical failure or malfunction
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Short circuit from defective or worn insulation
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Arc or spark from arcade machines
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Faulty electrical wiring of the building
After getting commercial property insurance, there’s no need to get a stand-alone contents coverage that reimburses the cost of damaged objects inside the amusement arcade. It’s because aside from the building, commercial property will reimburse the policyholder equal to the projected cost of the arcade machines and other objects destroyed.
The terms of commercial property insurance differs from carrier to carrier. Understand that some carriers offer two types of commercial property insurance. The first one only covers damage caused by fire or any other event specified, while the second covers property damage because of fires, natural disasters, civil unrest and more.
In addition, commercial property won’t cover products or goods amusement arcade sells such as souvenirs and food . For this, arcade owners must endorse stocks and contents coverage on their commercial property policy.
