Your Gun Insurance Options and Why Your Business Should Get One


From 2000 to 2018, the FBI’s records show that 43.7% of all active shooter incidents in the United States happened at commercial spaces or places of business. This points out the need for businesses to be protected financially in the event of firearm-related incidents happening. One of the best forms of financial protection comes in the form of gun insurance.

In this article, Joseph Chiarello & Co., Inc Firearms Business Insurance will talk about the status of gun insurance in the country, the two popular options available, and reasons why you should consider getting one.

Status of Gun Liability in the U.S.

There’s currently no major insurance company in the United States that offers separate, stand-alone gun liability coverage.

There are also no federal or state governments in the U.S. that enacted gun liability insurance laws. The Firearms Risk Protection Act introduced back in 2017 aims to prohibit the purchase of firearms to someone who was not covered by gun liability insurance. But this act has yet to be enacted into law.

With major insurance companies in the United States offering little by way of specifically firearm-focused policies, businesses may have only a few options when it comes to securing gun liability insurance.

These are usually offered in two ways: umbrella liability insurance and commercial general liability.

Commercial General Liability

Commercial general liability (CGL) is comprehensive insurance that provides coverage in case of damage or injury caused by a business’ operations, products, or on its premises.

In early 2021, a gunman opened fire at a gun store and indoor firing range near New Orleans that cost the lives of three people. According to the American Bar Association, in these cases liability can extend to third parties in shooting incidents, including:

  • Owners and operators of the business/facility where the shooting happened
  • Event promoters
  • Security firms
  • Police
  • Employers
  • Retailers or gun shops where the attacker bought the weapons (if bought illegally)
  • Organizations that fail to report disqualifying information to authorities

CGL is important for firearm-related businesses because it provides coverage for the damages following any gun-related incidents. This insurance policy usually covers professional liability, third-party medical expenses, legal expenses, and more.

CGLs will help cover most if not all of the expenses that follow and give your business another chance at financial stability. This makes CGLs an effective way to financially secure your business.

The average costs of CGLs range from $340 per year to more than $600. Companies like Joseph Chiarello & Co., Inc Firearms Business Insurance can offer policies that have a primary limit of $1,000,000 per occurrence with a $2,000,000 aggregate.

Umbrella Liability Insurance

Umbrella Liability Insurance is a personal liability insurance that covers claims over the regular homeowner’s policy coverage. It covers what your Homeowner’s Policy was not able to cover.

Let’s say a firearm accidentally injured someone on your property, and you may be held liable for a $1 million loss. If the homeowners’
policy can cover around $300,000, the umbrella liability insurance can cover the remaining $700,000.

This is what makes umbrella liability insurance worth considering. It can act as a separate policy or an addition to your current policy that covers property damage, injuries that occur on the property, libel, and certain lawsuits.

It is also worth noting that umbrella liability insurance is one of the few policies that can cover accidental shootings and self-defense.

While this policy is often offered as personal insurance, some companies offer policies that cover businesses as well. This makes Umbrella Liability Insurance a good option to consider in securing not just yourself but your business as well.

Umbrella Liability Insurance with a $1 million coverage costs $150 to $300 per year.


It is always important to keep your businesses financially secure. While there are limited insurance policies that provide coverage for firearms, it is still wise to consider signing up with the available options.

Commercial General Liability and Umbrella Liability Insurance will not only help you with any damages in case you are held liable for firearm-related incidents. With the growing number of incidents year on year, this provides many businesses with an extra layer of protection, and peace of mind.

Firearm Insurance You Can Trust

When it comes to you and your firearm business, it is important to get a known and trusted company to help. For over 40 years, Joseph Chiarello & Co., Inc Firearms Business Insurance has assisted more than 3,000 businesses. You count on us to accommodate your insurance needs reliably and cost-effectively.