Every business needs insurance, including your firearm business. But commercial property and liability insurance is more complicated when you’re a firearm industry business — and many end up with coverage that isn’t the best fit. Here’s a look at some of the issues your business may run into, and how to make sure you’re covered with the right insurance.

The Market Availability Issue

When you go to buy insurance, you have options. Insurance carriers, brokers, administrators and other service providers compete for your business. But availability in this marketplace can vary a lot depending on who you are and what sort of insurance you’re shopping for.

For a firearm business, market availability is often an issue. Despite the firearm industry being responsible for as much as $91.65 billion in total annual economic activity, there are only around four to five specialty carriers in the whole country writing the necessary policies. The number of insurance brokers, administrators and other service providers for firearm industry businesses is also far less than it is for products like commercial car insurance or business owners insurance.

Having fewer choices like this matters. It can make it harder to get the insurance you need — and to find it at a favorable price — even when you’re a profitable and safety-focused business with no negative claims history.

The Industry Expertise Issue

Many business owners rely on word-of-mouth and online forum recommendations for products like insurance. It’s not uncommon to have a trusted friend in the pool business or HVAC industry that “knows a guy,” or search online forums for recommendations from anonymous strangers. However, such recommendations may not always be the best fit to help you get the specific protection you need at the best price you could get it.

Insurance is full of talented individuals with plenty of expertise, but not all of them are the right match for you. The industry is often segmented into specialties, so even real experts in business insurance for another industry may miss important considerations for firearm business insurance, such as when a gunsmith’s restoration activity reclassifies them as a firearm manufacturer. Plus, it’s hard for someone giving an online recommendation to know if they’re really getting the expertise they need. After all, it’s the broker’s job to know, say, when a business owner should separate out their retail and range operations for insurance applications, and not the client’s.

Not working with firearm insurance experts could lead to delayed or denied applications for coverage, being at risk due to being underinsured, or paying too much because you’re overinsured.

The Expense Issue

Every business is naturally concerned about its bottom line, especially when it comes to its insurance expense. But what’s even more confusing is that it’s not always about what risk your business presents for an insurer. Sometimes, it’s about how you explain that risk and whether their underwriters working on your application understand it.

Firearm business operations do present some unique insurance risks. Some big-name insurance providers don’t make an effort to understand the industry and will turn away your business automatically. For the providers that do service the industry, underwriting professionals follow strict standards and guidelines, providing coverage agreements that address your risk as you explained it, which could be different than your actual risk profile. Then, there are the insurance cost issues that every business faces — deciding how to deal with a rate increase at an annual renewal, how to protect against new and emerging threats, how to mitigate risk and potential claims and more.

The end result is that many firearm industry businesses pay more for their coverage than they need to. A switch in carrier, a clearer presentation for underwriting, a more customized package of policies and a proactive risk management approach can often bring the overall expense down.

Tips to Manage the Issues and Find Great Coverage

Lockton Affinity Outdoor is no stranger to firearm business insurance. We insure more than 4,000 firearm businesses across the country, focusing exclusively on the needs of firearm industry businesses and working closely with each and every one of our clients to achieve the most affordable rates without sacrificing your protection.

So when it comes to the common insurance issues facing firearm businesses, we have some tips to offer:

On Market Availability

Just because the market is smaller, doesn’t mean you can’t access it. The key is working with an insurance provider that has access to the insurance market for your industry. Lockton Affinity Outdoor has roots stretching back over half a century. In that time, we’ve developed strong relationships with some of the world’s top specialty carriers — professionals who understand your industry and your needs.

Our Firearm Business Insurance Program is available to a wide range of firearm businesses, including:

  • FFL-licensed businesses (including home-based FFLs)
  • Retail, pawn, antique and collectible firearm dealers
  • Ammo reloading and manufacturing operations
  • Commercial ranges, training centers and more

Overcoming the market availability issue is possible. Even if you’re a new business or have had past claims, it’s possible to get the coverage you need at a price you can afford. Lockton Affinity Outdoor has good relationships with the carriers that write insurance for firearm businesses like yours and can help you place your coverage with a reputable and dependable carrier at a fair price.

On Industry Expertise

You don’t have to settle — insurers are out there who know your business. The key is in knowing what to look for. Knowledgeable firearm industry experts are involved in the industry, trusted by others and available to help your business find coverage. When it comes to Lockton Affinity Outdoor, our insurance program was established almost 30 years ago, our leadership has developed close partnerships with many of the top firearm industry organizations in the country and our in-house team of sales and customer service professionals bring decades of collective experience assisting firearm industry business owners like you.

Our expertise in the industry means we offer coverage that goes the extra mile:

  • General Liability coverage that has options available including ATF coverage, product liability and gunsmithing that covers the property of others.
  • Property coverage that’s designed to cover your buildings and their contents, range property and even your firearm industry inventory.
  • Workers’ Compensation coverage that offers the necessary statutory coverage for your place of business, including workplace injuries and employer liability.
  • Cyber Liability coverage is automatically included for businesses, plus options are available to cover business income, boiler and machinery, valuable papers and records, accounts receivable and more.

Additionally, Lockton Affinity Outdoor is a full-service broker and can help assist you with coverage for other aspects of your business operation, as well.

The industry expertise issue that many face can be overcome. Some insurance professionals have spent decades working with firearm businesses and learning along the way. Others have transitioned into a career in insurance after time in law enforcement, firearm retail operations, product manufacturing or nonprofit advocacy. Lockton Affinity Outdoor boasts insurance professionals with a wide variety of experience. We exclusively focus on firearm industry insurance and the unique needs our clients have, allowing us to recommend solutions tailored to protect against your actual risks.

On Expense

Firearm business insurance can be affordable without sacrificing your protection. In fact, the expense issue is largely solved once you address the issues above: finding an insurance provider that is both knowledgeable about the firearm industry and has the necessary relationships with the right carriers. With Lockton Affinity Outdoor, you get both.

With us, your firearm business can expect a streamlined process that touches on all of the following points:

  • We know what questions matter to underwriters and what’s needed to meet their requirements for policy approval and access the best rates available.
  • We consider your full risk profile and recommend the carrier or carriers that best suit your current business operations, insurance needs and budget.
  • We offer you a customized package of policies that ensure you have the protection you need, without costly coverage overlaps or gaps that put you at risk.
  • We provide ongoing support to answer your questions and arm you with proactive risk management resources to help minimize claims and control your expense.

Expense issues are fairly common in the commercial insurance space. But with the right insurance partner, it’s possible to keep them to a minimum. The team at Lockton Affinity Outdoor works diligently to provide the best level of service while keeping your risk management affordable. In fact, an average of 8 out of 10 businesses who receive a quote with us ultimately decide to trust us with their insurance.

The Lockton Affinity Outdoor Difference

Over the last 30 years, Lockton Affinity Outdoor has become a national leader in firearm business insurance. Our relationships with key firearm industry partners, depth and breadth of industry knowledge and commitment to providing the best products and service to all our clients are what makes us different from the rest.

Our coverage is widely trusted by firearm businesses across the country — including others in the industry that you probably already know. Plus, beyond the basics of protecting your day-to-day firearm business operations, our full-service brokerage can also assist you with other aspects of your protection, from gun club and event coverage to solutions for commercial auto and more.

If you’re still wondering whether your firearm business has the right insurance, we can help! Request a quote for your business in minutes by answering a just few questions. Our in-house team will reach out to help match you with the coverage the best fits your needs and your budget. Prefer to talk to a real person? Contact us at (844) 401-9444 or [email protected] to get started.