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ATF proceedings can be costly and time-consuming for Federal Firearms License holders. Whether you're facing a compliance investigation, audit, or administrative proceeding, having the right coverage in place can make all the difference in protecting your business.

Our specialized ATF Proceeding Coverage Endorsement is designed specifically for FFL holders who need protection during regulatory interactions. This coverage helps offset the costs of legal representation, document preparation, and other expenses associated with ATF proceedings.

Key benefits of ATF Proceeding Coverage include coverage for attorney fees during ATF audits and inspections, protection during license renewal challenges, support for responding to warning letters and notices of revocation, and assistance with compliance documentation and record-keeping requirements.

As regulations continue to evolve, having comprehensive coverage that addresses the unique risks faced by firearms businesses is more important than ever. Contact our team to learn how this endorsement can be added to your existing policy.

The firearms manufacturing industry continues to evolve, and so do the insurance needs of manufacturers. From new product liability considerations to evolving regulatory requirements, here's what firearms manufacturers should know about insurance trends in 2025.

Product liability remains a primary concern for manufacturers. With increased scrutiny on firearms design and safety features, manufacturers need robust coverage that addresses both traditional liability exposures and emerging risks related to new technologies like smart gun features and modular designs.

Supply chain disruptions have also impacted the industry, making business interruption coverage more critical than ever. Manufacturers should review their policies to ensure adequate coverage for delays in receiving components, materials shortages, and other supply chain-related losses.

Cybersecurity is another growing concern. As manufacturers increasingly rely on digital systems for design, inventory management, and customer data, cyber liability coverage has become essential. This is particularly important given the sensitive nature of customer information in the firearms industry.

At Action Underwriting, we stay ahead of these trends to ensure our clients have the coverage they need. Our team of industry experts understands the unique challenges facing firearms manufacturers and can help tailor coverage to your specific operations.

Operating a firearms business with a Federal Firearms License (FFL) requires more than just regulatory compliance—it demands comprehensive insurance coverage to protect your investment, employees, and customers. While the ATF doesn't mandate specific insurance requirements for FFL holders, operating without proper coverage puts your business at significant risk.

Commercial General Liability (CGL) is the foundation of any gun store insurance program. This coverage protects against third-party bodily injury and property damage claims. For firearms businesses, CGL is critical because you could be held liable if a customer is injured on your premises or if a product you sell causes harm. Industry-standard limits are $1,000,000 per occurrence with a $2,000,000 aggregate.

Business Property Insurance covers your inventory, equipment, and building from theft, fire, and other covered perils. Given that approximately 380,000 guns are stolen annually in the United States, protecting your firearms inventory is essential. Many policies require specific protective safeguards like monitored alarms and safes to maintain coverage.

Product Liability Coverage protects against claims arising from firearms or accessories you sell. Even if you didn't manufacture the product, as a seller you can be included in lawsuits related to product defects. This coverage is particularly important for gunsmiths and those selling customized firearms.

Workers' Compensation is required in most states if you have employees. Gun store employees face unique hazards, and this coverage protects both you and your team from the financial impact of workplace injuries.

The cost of gun store insurance typically ranges from $2,500 to $10,000 or more annually, depending on factors like location, inventory value, revenue, and claims history. While firearms businesses are often more expensive to insure than average retail operations, the protection is worth the investment.

At Action Underwriting, we specialize in firearms industry insurance. Our team includes FFL holders and certified instructors who understand your business. Contact us to discuss coverage options tailored to your specific needs.

Operating a shooting range—whether indoor or outdoor—comes with unique liability exposures that require specialized insurance coverage. From customer injuries to environmental concerns, range owners need comprehensive protection to safeguard their business and assets.

General Liability Insurance is legally required for most shooting ranges. This essential coverage protects against third-party bodily injury and property damage claims. The most common claims at shooting ranges involve slips and falls, but self-inflicted gunshot wounds also occur. Standard coverage limits of $1,000,000 per occurrence with a $2,000,000 aggregate are typical, with premiums ranging from $87 to $129 per month for smaller gun clubs.

Environmental and Lead Contamination Coverage is particularly critical for shooting ranges. Lead contamination from spent ammunition creates significant environmental liability. Cleanup costs can be substantial, and some insurers offer policies with limits up to $10,000,000 to help range owners manage claims related to lead hazards, penalties, and remediation expenses.

Indoor vs. Outdoor Considerations: Indoor ranges face ventilation and air quality concerns, while outdoor ranges must address noise pollution, habitat disruption, and broader environmental impact. Each type requires coverage tailored to its specific risk profile.

Product Liability is important if your range sells firearms, ammunition, targets, or safety equipment. Even though you didn't manufacture these items, you could be held liable if a product you sold results in injury or property damage.

Umbrella/Excess Liability coverage provides additional protection when regular liability limits are exhausted. Given the potential for catastrophic claims at shooting ranges, this extra layer of protection is highly recommended.

Workers' Compensation covers employee injuries and is required in most states. Range Safety Officers and instructors face elevated risks, making this coverage essential for any range with staff.

Insurance requirements vary by state and locality, so consulting with a specialist who understands the shooting range industry is crucial. At Action Underwriting, our team includes NRA certified Range Safety Officers and firearms instructors who speak your language. We understand the unique exposures ranges face and can help structure coverage that protects your investment.

For firearms manufacturers, product liability insurance isn't just recommended—it's often required to do business. Distributors regularly require manufacturers to provide evidence of product liability coverage before agreeing to distribute their products, and many retailers have similar requirements. Without adequate coverage, your access to sales channels may be severely limited.

What Product Liability Covers: This insurance protects your financial responsibility for losses or injuries caused by defects or malfunctions in your products. Claims typically arise from manufacturing or production flaws, design defects, or inadequate warnings and instructions. Even with quality control measures in place, the risk of a product-related claim always exists.

Coverage Limits and CGL Integration: While some product liability coverage may be included in your Commercial General Liability (CGL) policy, standard CGL limits of $1,000,000 per occurrence are often insufficient for firearms manufacturers. Given the potential severity of claims, many manufacturers need standalone product liability policies or significant excess coverage.

The PLCAA Factor: The Protection of Lawful Commerce in Arms Act (PLCAA) of 2005 provides some protection against lawsuits when firearms are used criminally. However, this protection has limits and doesn't cover product defect claims. Some states, like California, have enacted legislation enabling lawsuits against manufacturers, so understanding your exposure in each state where you sell is important.

Recall Coverage: If a defect is discovered that requires a product recall, the costs can be substantial. Recall expense coverage helps offset the costs of notifying customers, retrieving products, and managing the recall process.

Additional Coverage Needs: Beyond product liability, firearms manufacturers should consider Workers' Compensation (manufacturing facilities present unique employee hazards), Business Property coverage for equipment and inventory, Business Interruption coverage for supply chain disruptions, and Cyber Liability coverage for protecting sensitive customer and design data.

Finding insurance for firearms manufacturing can be challenging—few carriers have the underwriting expertise for this specialized industry. At Action Underwriting, our CEO is an FFL holder and registered manufacturer who understands the business from the inside. We work with carriers who know the firearms industry and can provide comprehensive coverage tailored to your manufacturing operations.