3 Types of Firearm Insurance Your Gun Store Needs

In 2021, over 5 million Americans purchased firearms. These people didn’t buy one gun each, either. Instead, experts estimate there were over 18 million firearms purchased that year. 

Most of these sales occur in gun stores. These stores offer several types of firearms, ranging from shotguns to high-capacity rifles.

Every firearms instructor will tell you that guns aren’t dangerous on their own. Instead, it’s people that make them hazardous with improper treatment. 

However, the point remains that firearms are more dangerous than other products. Gun stores need adequate firearm insurance to protect themselves from liability. This way, stores can protect themselves from potential accidents or threats.

But, there are several types of insurance for businesses. So, what are the best firearm insurance policies available?

If that’s what you’re wondering, keep reading! We’ll explore the three best types of insurance for firearm dealers. 

1. Commercial General Liability Insurance

The first type of policy that most firearm insurance companies provide is commercial general liability insurance. These policies offer coverage for bodily injuries, personal injuries, and property damage. 

Some qualifications apply to this insurance. The incidents described above must occur due to the company’s operations or products. Similarly, these incidents must occur on the company’s premises. 

People often consider this policy a comprehensive insurance plan for businesses. However, some technicalities apply to these policies, such as their different coverage levels:

Different Levels of Coverage

Commercial general liability insurance has varying levels of coverage. Some policies feature premises coverage, which protects your business from claims that occur on your premises during regular operating hours. 

Some policies may also have coverage for bodily injuries suffered on the grounds. Other policies also include coverage for property damage. 

You can also purchase excess liability coverage to cover any claim that surpasses the limit of the CGL policy. However, there may be limits on what a policy covers. Usually, firearm insurance companies call these limits “exclusions.”

What kinds of exclusions exist? One limit may be the costs associated with a product recall. For example, let’s say Smith and Wesson realized that one of its revolvers has a defect. 

This manufacturing company would recall these revolvers, which cost money. It would likely cause your store to lose money, as well. With this exception, your insurance would not cover this cost. 

2. Product Liability Firearm Insurance

Product liability insurance is the second type of firearms dealer insurance. This policy protects your business from claims that the products you sold caused injuries or property damage. 

An insurance company often offers this policy as a standalone insurance type. However, others include it as a part of general liability insurance. 

Regardless of how you get this policy, it’s essential for your business. When your company sells products to customers, you face risks from defective products causing injuries. Nowhere is this more true than with a gun shop. 

What does your product liability insurance cover? Usually, this coverage includes:

• Customer medical costs for their injury
• Legal fees and costs to protect your business
• Settlements and judgments against your company

Product Liability Insurance Costs

Product liability insurance costs vary between insurance providers. Several factors affect the expenses of this story. 

Some of these factors include:

• Industry
• Location
• Claims history
• Policy limits

Gun sellers usually face higher costs than other industries. You can expect this to cost your business more money. 

However, other factors could also lower your expenses. Your claims history and policy limits could also reduce your costs. 

3. Broad-Form Insurance

The third firearm insurance option is broad form insurance. Broad-form insurance coverage extends to covering rare events that affect your business. This insurance type usually charges a higher premium and deductible.

You can use this insurance type to cover several types of insurance, including non-physical assets. Broad-form insurance could cover your glass windows, for example.

You may use this to protect your windows from possible accidents. Broad-form insurance can sometimes be challenging to define, depending on the type of insurance. Most insurance policies either follow a basic or broad form. 

What are the differences between the two? Basic form policies usually cover fire, explosions, storms, smoke, leaks, etc. Broad-form policies, however, include damages like broken windows, falling objects, and water damage. 

Why does this insurance type benefit your firearm business? In short, firearms and their accessories provide higher risks than other products. For example, let’s say a fire broke out in your store. 

Guns still use gunpowder, which can cause tremendous damage when mixed with fire. So, it’s better to have a broad form of insurance to cover these potential threats.

Ways to Get Cheap Firearm Insurance

You may look at the three types of insurance policies listed here and panic. After all, maybe you run a small business. How can somebody expect you to purchase all these types of insurance? 

If that’s what you’re wondering, don’t worry. We’ll give you some tips to lower your insurance costs. 

First, we recommend investing in a security system. This can include things like security cameras and alarms. 

Insurance companies often charge lower premiums to companies with a security system. Companies offer this lower cost because your security makes your company less of a liability. In other words, you’re less likely to need the insurance claim. 

Another method is to spend significant time training your employees. You could even investigate firearms instructor insurance to ensure your workers know how to handle guns. Click on this link to learn more about lower insurance premiums. 

Find the Firearm Insurance You Need

Firearm insurance can be an extensive coverage for many businesses. However, the nature of your business makes extra protection necessary. The last thing you want is to become responsible for accidents on your premises. 

So, pursue these three types of insurance to ensure your business stays safe. From there, look for ways to make your insurance premiums more affordable. This way, you can protect your business and save money. 

We hope you enjoyed this article! It’s our mission to help businesses like yours protect themselves and their customers. So, check out our other content for more helpful tips today!