Armed and Growing

Guns are big business. Just ask some insurance brokers.

According to a report on InsuranceJournal.com, proposals to change state and federal gun laws is having an unintended effect on the gun insurance market – unprecedented growth. Experts in this segment say new policy submissions dealing with all aspects of guns, including gun shops, gun dealers and gun ranges are up exponentially compared to the last couple years.

“Every single one of my gun shops has increased its revenue by 25 percent in the last year,” says Scott Wilson, president of Best Shot Insurance in Chesterfield, Mo., a division of Charles L. Crane Agency. “In addition to that, the number of new ranges opening has gone through the roof.”

Fear is driving the growth, Wilson says. Some fear they will have their guns taken away under the proposed legislation, he says, so they are exercising what they believe is their Second Amendment right now while they still can.

Gun shops are not the only area in the market showing growth. Gun ranges that offer classes on self-defense and carrying a concealed weapon are seeing an uptick in enrollment as well, especially from women.

Teaching self-defense classes and concealed handgun classes opens the range up to professional liability exposures that often owners do not understand, the experts say. New legislation that targets concealed carry laws also will impact what is taught and range owners must be aware of the changes, Wilson says.

Wilson says increased demand for guns and gun services like gun ranges or classes has led many businesses to expand into other areas they were not in before. Often, that means insufficient insurance coverage as insureds sometimes fail to notify their providers.

“For gun ranges offering conceal carry classes there is a professional liability exposure,” he says. Gun shops getting into the manufacturing side without proper coverage is another area that Wilson believes is a growing exposure.

Carriers writing gun related classes are watching the various gun legislation proposals from the sidelines, ready to update coverages if and when the laws change.

Meanwhile, Wilson and other agents specializing in the market aren’t complaining. “When 2008 came around we were heavy into construction and lost half of our book overnight,” Wilson says. “This market segment has really helped our agency and this industry.”

To read more on insurance and guns, visit InsuranceJournal.com.

Topics Legislation Gun Liability