Operating arcade machines requires specific insurance coverage to protect your business from various risks. The primary insurance requirements include general liability insurance, which covers customer injuries and property damage on your premises. Commercial property insurance protects your arcade machines, furniture, and building from fire, theft, or vandalism. Workers' compensation insurance is mandatory if you have employees, covering workplace injuries. Additionally, consider business interruption insurance to cover lost income during closures, and commercial auto insurance if you transport arcade machines. The exact requirements vary by state and municipality, so consult with an insurance professional specializing in entertainment businesses to ensure you meet all legal obligations and adequately protect your investment.