Assault and battery is one of the most misunderstood coverage areas for Family Entertainment Centers (FECs), and it is also one of the most financially dangerous. These venues are designed to bring people together. Birthday parties, group events, arcades, food and beverage service, but that same environment increases the likelihood of conflict. When incidents happen, they rarely stay small. A single altercation can quickly escalate into a serious bodily injury claim, a lawsuit alleging negligence, and long-term reputational damage. Yet many FEC owners assume their General Liability policy will automatically respond.
The reality is far more complicated. Assault and battery coverage is often treated differently than standard premises liability within an insurance policy. In many cases, it is completely excluded. In others, it may be included but subject to a significantly reduced sublimit, sometimes a fraction of the overall liability limit. There are also policies that only provide coverage under very narrow circumstances, such as third-party acts, while excluding incidents involving employees or security personnel. This creates a dangerous gap between what business owners believe is covered and what the policy will pay.
One of the biggest misconceptions is how these claims are framed. While the incident itself may involve a physical altercation, lawsuits are frequently written under allegations of negligent security rather than assault and battery. This includes claims that the business failed to provide adequate lighting, proper staffing, crowd control, or timely intervention. This shifts the focus from the individuals involved in the altercation to the responsibility of the business. If the policy does not explicitly address negligent security within its assault and battery language, coverage can be limited or denied altogether.
Insurance carriers are increasingly cautious in this area, especially with FECs. High foot traffic, the presence of minors, extended operating hours, and potential alcohol exposure all contribute to the perceived risk. Combined with rising litigation costs and the trend of larger jury awards, carriers often manage their exposure by restricting assault and battery coverage. This can come in the form of exclusions, sub-limits, or endorsements that narrow the scope of protection. As a result, policies that appear competitive on price may be cutting coverage in one of the most critical areas.
For FEC operators, the key is to understand exactly how their policy responds before an incident occurs. This means reviewing whether assault and battery is excluded, whether a sublimit applies, and whether coverage extends to negligent security and employee-related incidents. It also means aligning coverage with operational realities such as staffing, security procedures, and alcohol services so there are no surprises when a claim arises. In an environment where one incident can lead to a six-figure loss, clarity around assault and battery coverage is not optional; it is essential to protecting the business.
