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Amusement Arcade Insurance

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  • Covers theft, damage, liability claims, and business interruptions
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What Is Amusement Arcade Insurance?

Amusement Arcade Insurance is a specialised form of commercial combined insurance designed to protect businesses that manage coin-operated entertainment machines, simulators, and gaming setups within public or private premises.

Amusement arcades are entertainment venues that operate a variety of coin-operated, token-based, or digital machines for public use. These venues offer interactive gaming experiences, including video games, claw machines, VR simulators, slot machines, redemption games, and other amusements that attract customers of all ages.

The Health and Safety at Work Act 1974 places a legal duty on employers to ensure the safety of both employees and the public. If a customer trips over loose wiring near an arcade machine and suffers an injury, the arcade owner can be held liable, even if the hazard was unintended or unnoticed.

For example, a customer is playing on a VR simulator when the machine unexpectedly malfunctions, causing them to fall and suffer a minor injury. They file a personal injury claim. This insurance helps to cover all the expenses. It’s a safety net for your entire business model.

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Types and Locations of Amusement Centres

There are three main types of entertainment arcades. Each one has different rules and insurance needs:

Types of Amusement Arcades

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Family Entertainment Centres (FECs)

These arcades welcome everyone, including children. They offer games like claw machines, penny pushers, and low-stake slots. If you’re running a licensed FEC, you’ll need permission from both the Gambling Commission and your local council.
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Unlicensed Family Entertainment Centres (UFECs)

These are smaller arcades that only offer low-risk machines (Category D). They still need a permit from the local authority. Even though the games are simple, things can still go wrong, so insurance for machine damage and public liability is still important.
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Adult Gaming Centres (AGCs)

These are for adults only and have higher-stakes gaming machines. They’re often found in city centres or nightlife areas. AGCs must have a proper gaming licence and premises licence. Because the machines are more valuable and there’s more risk involved, AGCs should consider insurance for theft, vandalism, license issues, and loss of income.

Locations of Amusement Arcades

 Arcades can be found in various locations across the country. The location of yours will affect the type of cover you need.

  • Seaside Towns: Arcades are a big part of the British seaside experience. These places get busy in the summer, so you’ll want insurance that covers busy crowds, machine breakdowns, and seasonal income.
  • Shopping Centres and Leisure Parks: These arcades are often part of a bigger entertainment space like bowling alleys or cinemas. They should have insurance for equipment damage, accidents, and business interruptions.
  • City Centres and Nightlife Areas: Adult Gaming Centres are often based in busy city locations. With more people around and higher risks, you’ll need insurance that covers theft, vandalism, staff claims, and loss of license.
  • Holiday Parks: Many arcades are inside holiday camps or caravan parks. These often run seasonally, so insurance should include cover for short-term staff, mobile equipment, and weather-related damage.
  • Small Towns or Standalone Arcades: Independent arcades in quieter areas still face risks like fires, floods, or accidents. Full insurance cover helps keep your business running if something unexpected happens.

Why Do I Need Arcade Business Insurance?

A key voice in shaping rules and protecting operators across the UK is BACTA (British Amusement Catering Trade Association). As the official trade body for the amusement and gaming machine industry, BACTA supports arcade owners with guidance on compliance, licensing, and player protection.

  • BACTA regards amusement centre insurance as a crucial factor. It helps protect your business from unexpected problems like:
  • Covers injury claims if a customer is hurt on your premises.
  • In case any game or machine causes harm or injury, product liability insurance helps to cover the loss.
  • Protects your arcade machines from theft, vandalism, or accidental damage.
  • Helps cover lost income if your arcade is forced to close due to fire, flood, or other insured events.
  • A legal requirement if you hire staff, it protects against employee injury or illness claims.
  • Safeguard the prize stock and daily cash flow.

What Professions Are Covered Under Amusement Arcade Insurance?

  • Amusement Centre Owners
  • Arcade Managers
  • Machine Technicians
  • Catering Operators (on-site cafés or snack bars)
  • Cleaning and Maintenance Staff
  • Security Personnel
  • Event Coordinators (in multi-use venues)
  • Retail Shop Workers (selling toys or tokens)
  • Temporary or Seasonal Workers
  • Entertainers and Performers
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amusement arcade gaming

Types Of Covers In Amusement Arcade Insurance

1

Employers Liability Cover

If you hire anyone, even just one person, you’re legally required to have employers’ liability insurance. It protects your arcade if an employee gets hurt or becomes ill because of their job. For example, if a staff member trips over wires behind a machine or gets injured while doing repairs, this insurance pays for any legal costs or compensation.

2

Public Liability Cover

Because lots of people visit arcades—especially children—there’s a higher chance of accidents like slips or trips. To keep everyone safe, make sure your arcade is well-lit, walkways and exits are marked, and stairs have secure handrails. The building should be in good condition, with no loose flooring or blocked areas.

3

Engineering Inspection Policy Cover

If your business involves the operation of plant and machinery including electrical installations, lifting and ventilation equipment or pressure systems then regular inspections are required to check they are operating safely within the relevant legal requirements. This policy covers the services of qualified professionals to inspect the plant and offer expert advice

4

Book Debts/Accounts Receivable Cover

If you rent out machines or work with event organisers who pay later, there’s always a risk someone won’t pay. Book debts or accounts receivable insurance protects you when that happens. If a client goes bankrupt or simply doesn’t pay, this cover helps recover the money you’re owed. Many arcade businesses use this insurance to protect their cash flow, especially when working with schools, party planners, or corporate events.

5

Buildings Cover

If you own the building your arcade is in, you’ll need building insurance. Imagine a fire, flood, or storm damages the roof or walls. Repairs could cost thousands of pounds. This insurance helps pay for fixing the structure of the building. It usually covers things like the walls, floors, roof, toilets, and built-in fittings.

6

Business Interruption Cover

What if a fire forces you to shut down your arcade for a few weeks? Or flooding damages your machines, and you can’t open them? Business interruption insurance helps cover your lost income during times like this. It can pay for things like rent, wages, and bills while your business is closed for repairs.

7

Contents Cover

Your arcade is full of valuable stuff, gaming machines, furniture, prize counters, and more. If a fire, flood, or theft happens, you could lose a lot. Contents insurance protects these items by covering the cost of repairing or replacing them. You can choose a policy that pays for brand-new replacements or one that factors in wear and tear. It’s important to list everything properly so you’re fully covered.

8

Embedded Machinery Breakdown

Think about what happens when a popular arcade game, like a racing simulator or claw machine, suddenly stops working. Not only does it annoy your customers, but it also means lost income. Embedded machinery breakdown insurance helps cover the cost of fixing or replacing machines that break down due to electrical or mechanical issues.

9

Glass Damage Cover

Arcades usually have a lot of glass-like front windows, doors, or mirrors inside. These can easily break due to accidents, rough weather, or even vandalism. Glass insurance helps pay for the repair or replacement of broken glass, so you’re not left with a big bill. Some insurers even offer 24/7 glass repair services. This cover is helpful because keeping your arcade looking good and safe is important for attracting customers.

10

Goods In Transit

If you ever move arcade machines from one place to another, like between locations or for repair, you’ll need goods in transit insurance. It protects your machines while they’re being transported, in case they get damaged or stolen. For example, if a gaming machine falls over in a van or goes missing during delivery, this insurance helps cover the cost.

11

Property Exposure

One of the main risks to your arcade property comes from electrical systems and the potential failure of equipment. It’s essential that all wiring is professionally installed, regularly tested, and suitable for your machines. Damage from vandalism is also a concern, especially with high-value arcade equipment. Long operating hours increase the chances of something going wrong, especially for systems like virtual reality (VR) consoles.

12

Legal Expenses Cover

Running an arcade can sometimes lead to legal problems, like disputes with customers, staff, or suppliers. Legal expenses insurance helps pay for legal advice, court fees, and solicitor costs if you ever face a legal issue. Let’s say a customer sues you over a broken prize machine or a former employee files a claim; this cover helps protect your business from high legal costs.

13

Loss Of Rent Receivable

Imagine your arcade in Brighton gets damaged by a fire and you can’t operate for a few months. If you rent out part of your building like a snack bar or game booth, you’ll also lose rental income. Loss of rent receivable insurance helps cover the lost rent while the property is being repaired. It’s a smart choice for arcade owners who lease parts of their space.

14

Money In The Home Of The Insured Or Authorised Employee

Sometimes, you or a trusted employee may take the arcade’s cash home before banking it. But what if it’s stolen from their house? That’s where money in the home of the insured or authorised employee insurance helps. It covers theft or loss of business cash kept at home, usually overnight or for a short time.

15

Money On Premises Or In A Safe

Arcade businesses often hold a lot of coins and cash, especially after a busy weekend. Money on premises or in a safe insurance protects that money if it's stolen from the building or a secure safe. For example, if someone breaks in and takes cash from your safe, this cover can help you recover the loss.

16

Money On The Premises Outside Business Hours

What happens if your arcade is closed for the night and someone breaks in to steal cash from a till or change machine? That’s where money on the premises outside business hours comes in. It protects your money when the arcade is closed and no one is around.

17

Subsidence Cover

Think about your arcade suddenly showing cracks in the walls or uneven floors. This could be caused by subsidence, when the ground under your building starts to sink or move. It often happens in areas with clay soil or near old trees. It helps pay for fixing the damage and makes sure your arcade stays safe to use.

18

Product Recall Policy

Let’s say you have vending machines or prize toys in your arcade, and one turns out to be faulty, maybe a toy catches fire, or a plug is unsafe. You might be forced to recall the product to protect customers. Product recall insurance helps cover the cost of removing these products, informing customers, and dealing with complaints or claims

19

Accidental Damage Cover

Let’s say a child spills a drink on one of your gaming machines, or someone trips and breaks a screen. Things like this happen all the time in gaming arcades. That’s where accidental damage insurance comes in; it helps cover the cost of repairs or replacements when something is damaged by mistake. This insurance usually includes damage caused by customers, staff, or even accidents like burst pipes.

20

Tenants Improvements

If you’re renting your arcade space and you’ve spent money on new flooring, game setups, lighting, or wall decor, those are called tenants’ improvements. They’re not part of the building, but they’re your investment. If there’s a fire, flood, or break-in, tenants’ improvements insurance helps cover the cost of repairing or replacing what you added.

21

Terrorism Cover

While rare, incidents like bomb threats or attacks can still happen in busy areas like shopping centres or seaside towns, places where arcades are often located. Terrorism insurance helps cover damage to your arcade and any income lost if you're forced to shut down temporarily.

family with two children in amusement arcade

Is Amusement For Arcade Insurance Mandatory Arcade Owners?

Having arcade operator insurance is not strictly mandatory for all arcade owners. However, depending on how your business operates, especially if you have staff or allow public entry, you may be legally required to carry certain forms of cover under law.

While you might not be obligated to take out a full insurance package, regulations do require that businesses meet specific legal responsibilities to protect employees and the public. If these responsibilities aren’t met, you could face heavy fines or legal issues.

Even where cover isn’t legally enforced, many arcade owners choose to secure comprehensive insurance. This is because arcades involve expensive equipment, high foot traffic, and unpredictable risks.

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multi ethnic teenage friends playing arcade games

How Much Does Amusement Arcade Insurance Cost?

The cost of the Insurance depends on several factors specific to your business. No two arcades are the same, so insurers calculate premiums based on your risk profile and coverage needs.

Key Factors That Influence the Cost:

  • Business Location: Arcades in busy cities like London may cost more to insure than ones in quieter towns.
  • Size of Your Arcade: The more machines and visitors you have, the higher your risk and premium.
  • Types of Machines: Expensive or high-tech machines (like VR games) may increase your costs.
  • Claims History: If you’ve had previous insurance claims, insurers may see your arcade as a higher risk and adjust premiums accordingly.
  • Value of Equipment: The more valuable your machines and cash systems are, the more it will cost to insure them.
  • Type of Insurance: Most arcades need this to protect against customer injury claims. It’s often included in your policy.
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How To Get Low-Cost Arcade Business Insurance?

Install Machine-Specific Security Tracking

What if someone tries to break into your arcade machines, and you have no way to know when or how it happened? That’s a big risk, and insurers charge more when the risk is high. You can avoid this by installing security tracking for each machine. Things like tamper alarms, CCTV, or tracking for portable machines help protect your business

Request A Risk Assessment From Your Insurer

If your arcade is in a busy area, your insurer may think it’s more likely to face problems like theft or damage. But what if you’ve done everything to keep it safe, like trained staff, working alarms, and safe wiring? Ask your insurer for a risk assessment. If they find that your place is well managed, you may get a cheaper quote.

Limit Your Opening Hours To Reduce Risk

Most trouble happens at night, vandalism, theft, or accidents often occur during late hours. If you reduce your arcade’s opening hours, especially at night, you lower the chance of problems. If you’re only open during safer times, they may see your arcade as low-risk. Fewer risks mean lower insurance premiums.

Increase Your Voluntary Excess

Let’s say your arcade in Blackpool has a small water leak. If your insurance covers it, you may still have to pay part of the cost, which is called an excess. Now, if you choose to increase your voluntary excess, your monthly or yearly insurance premium can be lower.

Bundle Multiple Business Policies Together

Running an arcade usually means having several types of insurance, like building cover, public liability, and employee insurance. Buying each one separately can be expensive. Instead, you can bundle them together with one insurance provider.

Use Pay-As-You-Go Insurance For Off-Peak Months

If your arcade is busier in summer than in winter, like in seaside towns, your insurance needs might change throughout the year. Some insurers offer flexible cover that adjusts based on how much business you’re doing. For example, if you close some machines in winter or reduce your opening hours, you won’t need to pay the same as you would during peak season.

What Is Not Included In Amusement Arcade Insurance?

What’s Not CoveredExplanation
Wear and TearGradual damage from regular use, like worn-out controls or faded décor, isn’t covered as it's considered part of routine upkeep.
Unlicensed MachinesIf your gaming machines aren’t registered with the UK Gambling Commission, any related claims will be rejected.
Deliberate DamageAny intentional harm caused by you, your staff, or someone connected to the business won’t be insured.
Cyber Incidents (Without Add-On)Hacking, data loss, or malware attacks aren’t included unless you’ve added cyber insurance separately.
Theft Without Forced EntryIf someone enters using a key or the arcade was left unlocked, theft claims may be denied.
Illegal Activities on SiteIssues caused by unlawful acts, such as drug use or underage gambling, aren’t protected under your policy.
Pandemic or Virus-Related ClosuresMost policies exclude business interruption due to pandemics unless you’ve taken out specialist cover.
Flood Damage in Low-Risk AreasProperties outside flood-prone zones often need extra cover to be protected against flood-related loss.

Frequently Asked Questions

How Can I Obtain A Quote For Amusement Centre Insurance?

Start by visiting an insurance website or contacting a broker who deals with arcade and gaming insurance. You’ll need to give some basic details about your business, like your location, how many machines you have, and if you employ staff. Once you provide the details, they’ll offer a quote based on your needs. It’s a good idea to compare quotes from different insurers.

How Can Loss Of Licence Insurance Protect My Arcade Shop If I Lose My Gaming Or Alcohol License Unexpectedly?

Loss of Licence insurance helps if your arcade’s gaming or alcohol licence is taken away or not renewed. It covers your lost income during that time, so your business doesn’t suffer while you sort out the issue or apply for a new licence.

How Can I Pay For My Policy?

Paying for your arcade business insurance is simple and flexible. Most insurers offer a few payment options to suit different business needs:

  1. Monthly Direct Debit: Spread the cost over 12 months with fixed monthly payments. Ideal for small arcade owners managing cash flow.
  2. Annual Payment: Pay the full premium upfront and often receive a small discount for doing so.
  3. Credit or Debit Card: Some insurers and brokers allow secure card payments online or over the phone.

Can I Customise My Entertainment Arcade Insurance Policy To Suit My Specific Needs?

You can easily customise your entertainment arcade insurance policy to match your specific business needs. Most insurers offer flexible cover options so you don’t have to pay for things you don’t need. You can choose to add public liability insurance to protect against customer injury claims, and employers’ liability if you have staff.

How Can Arcade Operator Insurance Protect My Business?

Arcade and gaming insurance protects your business from unexpected problems that could lead to major financial losses. It usually covers damage to your property or machines, injury claims made by customers or employees, and loss of income if you’re forced to temporarily close.

How Long Does It Take To Get A Quote?

Getting a quote for Arcade Business Insurance is usually quick. Many insurers offer quotes online in just 5 to 15 minutes. You’ll need to provide some basic details, like:

  • Where is your arcade located
  • How many machines do you have
  • Your annual income
  • Security at your premises

Does Amusement Centre Insurance Cover Damage To Arcade Machines And Equipment?

Most gaming arcade insurance policies cover damage to your arcade machines and equipment, as long as you’ve added contents or equipment cover. This includes protection against accidental damage, fire, theft with forced entry, and vandalism. However, the insurance usually won’t cover damage caused by general wear and tear or poor maintenance.