In April 2021, Governor Phil Murphy of New Jersey has proposed new legislation as a response to increasing gun violence in the state. With the renewed legislation, firearm-related businesses can brace for tougher barriers of entry and stricter adherence to the law.
This may leave businesses vulnerable to liabilities, lawsuits, and other financial challenges. In this article, will talk about the proposed gun legislation, why it matters, and the need for insurance underwriting services for gun shops.
What Does Gov. Murphy’s Legislation Cover?
- Setting aside $10 million in the current budget to fund gun violence intervention programs
- Requiring gun permit applicants to first pass as a safety course
- Mandating all guns not in use to be kept in a lockbox or gun safe
- Increasing the purchasing age for a firearm to 21
- Using microstamping technology so fired rounds can be traced
- Requiring ammunition sales to be tracked electronically
- Banning .50-caliber weapons
- Making it easier to hold gun manufacturers liable for violence stemming from the use of firearms
- Holding a gun safety summit among governors
- Convening a gun safety commission within the state
The White House has also renewed its push for gun control measures. These legislations could mean gun stores and firearm-related businesses will be operating under stricter government guidelines.
How Will It Affect Gun Stores?
If the legislation is passed, gun stores and other firearm-related businesses may run the risk of more lawsuits and increased liabilities. As more rules are imposed on business owners, there is a greater expectation of compliance, as well as potential added costs in their operations.
The Protection of Lawful Commerce in Arms Act (PLCAA) protects firearms manufacturers and dealers from being held liable when crimes were committed using their products and has long been business owners’ way of protecting themselves when their products are misused.
There are, however, precedents being made that demonstrate that PLCAA’s protection is not absolute. The Soto v. Bushmaster Firearms International, LLC case of 2019 has shown that, depending on state laws and legal arguments presented by plaintiffs, the PLCAA doesn’t guarantee total protection from litigation.
This stresses the need for firearm-related businesses to consider securing themselves financially through proper insurance underwriting.
What Is Insurance Underwriting?
Insurance underwriting is the process of assessing the risks of insuring a business and offering insurance based on the risks of your industry. This helps insurance providers design a tailored coverage that’s exactly right for your needs.
In addition to the trend of increased risk of litigation mentioned above, for businesses in the gun industry, any faulty products or any accidents on company premises can leave them liable for damages and litigation.
Joseph Chiarello & Co. helps determine which areas of the business are most susceptible to risk and offers insurance products for your protection. These risks can differ depending on the business: a gun range would need extra protection from any liabilities if there are accidents that occur on the premises due to actions by customers, for example.
We provide you with advice on which aspect of your business needs to be insured and what kind of coverage you need. It might be property insurance to protect against fire or theft, or professional liability to cover your business from damages caused by employee error.
Future Proof Your Business
As firearm legislation across the country continues to be updated, the gun industry must also adapt to the changes to keep its businesses running.
Realizing the need for proper insurance underwriting services for gun shops not only helps them be financially secure themselves, it also helps them stay in business.
Insurance Services You Can Trust
For over 40 years, Joseph Chiarello & Co. has established itself as one of the trusted gun insurance companies in the industry. Contact them today and find out how they can secure your business.