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Insurance Buying Guide for Virtual and Augmented Reality Businesses
Which Insurance Should You Consider?
Consider product liability, tools, equipment and inland marine, commercial property, cyber liability, and technology errors and omissions (E&O). Start with the coverages tied to your day-to-day operations, then use the situations and buying questions below to compare your options.
Product liability
You sell a headset, controller, wearable, battery, accessory, or connected device.
SBA identifies product liability as a consideration for businesses that make or sell products. Commercial general liability may include products and completed-operations terms for specified injury or property damage; verify how each device and use is described.[1]
Ask Before Buying
Which models, accessories, battery configurations, software features, sales territories, and importer roles are within scope?
Tools, equipment and inland marine
Devices, prototypes, demos, or event equipment move between labs, venues, customers, and trade shows.
Inland marine can address business property away from a fixed location or in transit. Identify owned, rented, and customer equipment and the stages the actual form covers.[1]
Ask Before Buying
Which equipment, routes, event locations, transit stages, and temporary storage are included?
Commercial property
You operate a lab, arcade, demo venue, or training space with equipment and customer access.
Check locations, equipment values, covered causes, deductibles, and premises interests. Explain how customers use the space and whether staff supervise the experience.[1]
Ask Before Buying
Are the venue, equipment, tenant improvements, and demo activities listed with accurate values and limits?
Cyber liability
Your headset or app collects accounts, voice, motion, room maps, payment, or cloud-service data.
Ask whether a cyber quote fits the data and service dependencies involved. Review actual incident, vendor, interruption, and liability wording; the available child-privacy source does not establish rules for every sensor type or policy coverage.[1][3]
Ask Before Buying
Which data events, cloud failures, restoration costs, and service interruptions trigger the quoted terms?
Technology errors and omissions (E&O)
You provide AR/VR software, simulations, integration, training, or hosted services under contract.
Ask whether a technology errors-and-omissions proposal fits the service and performance commitments. Hardware product terms do not establish how software or professional outcomes are treated.[1]
Ask Before Buying
Which software, content, training, integrations, uptime or safety promises, and indemnities are described?
Before Shipping a Device
Provide the exact device model, radio components, battery type and configuration, country of manufacture, and shipment mode. FCC equipment-authorization rules are device-specific. PHMSA’s October 2024 shipper guide, reflecting May 2024 requirements, varies by shipment configuration; check current hazardous-material rules for the shipment. Neither source establishes insurance coverage.[2][4]
Separately list prototypes, production inventory, samples, demo units, and equipment held by suppliers or venues. Ask where property protection begins and ends and which values and causes of loss apply.[1]
Before Launching a Hosted or Public Experience
Map which account, voice, movement, room-map, and payment data the product collects, where each is stored, and which vendors can access it. If children may use the service, review whether its audience and features bring child-privacy rules into play.[3]
For an arcade, demo, or training venue, document customer access, supervision, equipment setup, staff roles, and emergency procedures. Ask the broker how the venue and hosted-service exposures are described without assuming either one determines policy response.[1]
Providers to Compare by Coverage
Product liability
Alliance Risk
Spot Score
Review Score
Not enough ratings
Amelia Risk
Spot Score
Review Score
2.0/ 10
Tools, equipment and inland marine
Alliance Risk
Spot Score
Review Score
Not enough ratings
Commercial property
Alliance Risk
Spot Score
Review Score
Not enough ratings
CFC
Spot Score
Review Score
Not enough ratings
Cyber liability
Alliance Risk
Spot Score
Review Score
Not enough ratings
Amelia Risk
Spot Score
Review Score
2.0/ 10Technology errors and omissions (E&O)
Alliance Risk
Spot Score
Review Score
Not enough ratings
Amelia Risk
Spot Score
Review Score
2.0/ 10Common Questions
What should I include when quoting a public VR demo or arcade?
Describe the venue, customer access, supervision, session flow, equipment, staff, and whether customers can move through a physical space while wearing a headset.[1]
Read the Full AnswerSources and Further Reading
- Commercial Insurance Guide — California Department of Insurance. Commercial Insurance Guide, revised June 14, 2024: purchasing coverage, commercial property, inland marine, boiler and machinery, commercial general liability, and workers compensation.
- Children’s Online Privacy Protection Rule: A Six-Step Compliance Plan for Your Business — Federal Trade Commission. Factors for determining whether a service is directed to children under 13, lines 50 onward
FTC child-directed service guidance; it does not resolve every sensor-data question.
- Lithium Battery Guide for Shippers — U.S. Department of Transportation, Pipeline and Hazardous Materials Safety Administration. Guide description, October 2024 update
PHMSA’s October 2024 shipper guide reflects May 2024 requirements; check current hazardous-material rules for each shipment.
Spot, a product of Tools for Enlightenment, publishes this guide and works in the commercial insurance market. This is general buyer education; policy terms and state-specific obligations determine coverage and requirements.
Updated 2026-09-28. Editorial Policy
Get Help With Insurance Buying and Renewals.
Get help buying coverage and managing renewals, with less paperwork for your team. Start with a free consultation.