How Gun Store Owners Choose the Right Business Insurance Coverage
- Nate Jones, CPCU, ARM, CLCS, AU
- 6 hours ago
- 2 min read
Owning a gun store comes with unique risks that require specialized insurance. From property damage to liability claims, firearm retailers must carefully choose business insurance coverage that protects their investment. Selecting the right coverage ensures compliance with state and federal regulations and safeguards both the business and its employees.
Step 1: Assess Your Risks
Start by evaluating your store’s specific risks:
Inventory Value: Consider firearms, ammo, and accessories.
Location Risks: High-crime areas may require enhanced property coverage.
Employee Exposure: Determine the need for workers’ compensation.
Customer Liability: Identify scenarios where third-party injuries or accidents could occur.
Understanding your risks helps prioritize the types and amounts of coverage you need.
Step 2: Understand Mandatory and Recommended Coverage
Gun stores often need a mix of insurance types to meet state and federal requirements:
General Liability Insurance: Essential for third-party injuries or property damage.
Property Insurance: Covers inventory, safes, and equipment from theft, fire, or natural disasters.
Product Liability Insurance: Protects against claims related to firearms or ammo sold.
Workers’ Compensation: Required in most states if you have employees.
Business Interruption Insurance: Helps your store stay afloat after unexpected events.
Check your state insurance regulations and federal FFL requirements through the ATF.
Step 3: Prioritize Coverage Based on Risk
Not all coverage is equal—prioritize based on exposure:
High Priority: Liability and property insurance
Medium Priority: Product liability for FFL dealers
Optional but Recommended: Business interruption and supplemental coverages
This ensures the most critical risks are covered first, while staying within budget.
Step 4: Compare Specialized Providers
Choose providers who understand firearm retail risks. Wexford Insurance specializes in gun store coverage and can guide you in selecting policies tailored to your business.
Step 5: Request and Review a Quote Online
Submit your store details online to get a customized insurance quote. Review coverage limits, exclusions, and premiums carefully. Adjust coverage as needed to balance protection with cost.
Step 6: Finalize Coverage and Stay Compliant
Once you select the right policy, maintain records for compliance and periodically reassess coverage as your business grows or changes.
