Operating arcade game machines is an exciting business venture, but it comes with inherent risks. Protecting your investment and livelihood requires understanding and securing the right insurance coverage. This is not just a wise business practice; it's often a legal requirement mandated by landlords, lenders, and local regulations.

The cornerstone of your coverage is General Liability Insurance. This is absolutely essential. It protects your business if a customer is injured on your premises (e.g., slips, falls) or claims property damage caused by your operations. For instance, if a child gets hurt while playing on a machine, this policy can cover associated medical expenses and legal fees.

Commercial Property Insurance is equally critical. It safeguards your physical assets—the arcade machines themselves, your furniture, inventory, and signage—from perils like fire, theft, or vandalism. Without it, replacing a single high-tech arcade cabinet could represent a devastating financial loss.

If you have employees, Workers' Compensation Insurance is typically legally mandatory. It provides benefits to employees who suffer job-related injuries or illnesses, covering medical costs and a portion of lost wages. This protects your employees and shields your business from potential lawsuits related to workplace accidents.

Depending on your specific operation, you may need additional policies. Commercial Auto Insurance is necessary if you use a vehicle for business purposes, like delivering or servicing machines. If you host tournaments or special events, consider Event Liability Insurance. For businesses that manufacture or extensively repair machines, Product Liability Insurance becomes important.

Before purchasing a policy, carefully assess the value of your equipment and the specific risks of your location. Work with an insurance agent who specializes in commercial or small business policies to ensure you get the right coverage limits. Adequate insurance is not an expense; it's a fundamental investment in the stability and longevity of your arcade business.