Our coverage extends beyond traditional brick and mortar stores to include businesses in the firearm manufacturing and ammunition manufacturing industries. We have comprehensive policy offerings across the entire firearms business.
Insurance Navy is no stranger to offering affordable insurance programs for gun stores, even for operations with more risks than others.
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How much does Gun store insurance cost?
Gun store insurance costs will depend on several important factors pertaining to your business. Factors such as the value of the stock on the shelves, whether you have a shooting range, and how much revenue you bring in each year.
A typical Business Owners Policy usually costs anywhere from $1500 to $4000 per year for small to medium sized gun shops. A standalone liability policy usually costs around $500 to $1500 per year.
Shops that have indoor shooting ranges or offer gunsmith services will usually pay a lot more for coverage. This is because the risk the insurance carrier takes is much higher.
Insurance companies like Philadelphia Insurance Companies, Markel, and CNA specialize in covering firearms retailers. They will often give better rates than a regular commercial insurer who doesn't specialize in insuring gun shops.
Types of Business Insurance a Gun store needs
General liability insurance coverage for gun shops
General liability insurance is what protects gun stores when it comes to third party lawsuits over bodily harm or property damage.
The standard gun shop policy protects up to $1 million per incident and $2 million in total coverage. That covers accidental falls by customers or any injuries suffered from handling the guns on display.
Insurance companies usually want to make sure the gun shop has a valid FFL license and is in good standing with the ATF before they'll give them the coverage. The one place where a standard policy will leave you exposed is with claims that come from someone doing something with a gun that was illegal, or those that were caused on purpose.
Product liability insurance for gun dealers
Product liability coverage kicks in when a gun, ammo or an accessory you sell causes some damage because of a defect with it.
For example, if you sell a gun that was manufactured incorrectly or an aftermarket part like a trigger breaks and causes damage to the shooter. That limit is usually tied to your general liability, $1 million per occurrence.
Gun shops that sell used guns or do repairs on them are more likely to have problems with product liability. You might want to consider a higher limit or an umbrella policy if you sell used firearms.
Workers compensation insurance
Illinois, Texas and most states will require you to have workers' compensation insurance if you've got employees. It covers medical expenses and lost wages if someone gets hurt on the job. Whether that's just moving boxes, working the counter or operating some heavy equipment, your business is protected.
Working in a gun shop, whether you're selling, working in the back or sweeping up, brings some unique hazards. Repetitive strain from cleaning guns, hearing damage from the shooting range are just some that regularly happen. Rates will vary depending on the state and the type of work the employee does.
Business property insurance
Business property insurance covers your building and all your property against theft, fire, vandalism and the weather. When running a gun store you want to get the agreed value on your inventory, not the actual cash value. You can get all the replacement stock you need if something gets damaged.
Policies usually will want you to have some security measures in place such as alarms, steel doors, and safes. You can usually set a limit on how much of your property gets covered. Usually from $50,000 to $500,000 depending on the size of your store.
Specialty Firearm and shooting insurance
If you are running an indoor range or teaching people how to use a gun, you're going to need some extra liability insurance coverage. This extra insurance covers injuries caused by stray bullets, hearing damage, and accidental discharges during a shooting lesson.
Specialty insurance companies like Sportsman's Insurance or NRA endorsed programs offer this type of insurance coverage. Policies usually range from $1 million to $5 million in shooting range specific liability insurance coverage.
Gun shops teaching concealed carry classes or youth programs face higher liability exposure. You'll want to make sure that your policy covers instructor liability as well.