Gunsmith Insurace

[Jud96]

Hey guys, I’m thinking of getting my FFL in the future to do some barrel work and gunsmithing on the side. I have an LLC already and I’m working on getting my shop finished up right now. I’m not looking to make it a living, just something to keep me in the industry and more of a hobby.

Having said that, what kind of insurance should I have and what’s a ballpark amount I’d be paying for it? Thanks!

 

[AlNyhus]

'Morning. Make sure your home owners insurance will allow you to do that type of work. Even if the shop is detattched from the home, but on the same property, some home insurance will balk on covering the home.

I was just at a friend's yesterday with this exact situation. He ended up buying a free standing shop a few miles outside of town to be able to keep his home insurance.

Good shootin' -Al

 

[LVLAaron]

 

[clowdis]

I bought insurance through the NRA and it was in the neighborhood of $2,000 per year, and that was 5 years ago. The less your homeowners company knows about your gun business the better. Most insurance companies like Nationwide, Farmers, etc. won't touch it.

 

[Jud96]

I should add, my shop is separate from my home and is on a piece of property that’s zoned as commercial and already has 2 businesses on the property, neither are gun related though. I’m very good friends with the owner of the property, so insurance is my only concern right now.

 

[boltfluter]

I bought insurance through the NRA and it was in the neighborhood of $2,000 per year, and that was 5 years ago. The less your homeowners company knows about your gun business the better. Most insurance companies like Nationwide, Farmers, etc. won't touch it.

Your business is a machine shop. Period. And you work on anything and everything related to machining. From tractors to stuff for NASA! Have fun but error on the side of caution. As in, do not tempt fate, as this is a hobby just for some fun money.
Paul

 

[243winxb]

You Icorporated your business. You have LLC. No insurance needed?

 

[tobnpr]

You Icorporated your business. You have LLC. No insurance needed?

Why would you think that merely setting up an LLC or any corporate entity (or sole proprietorship or partnership) would require one to have General Liability insurance?

There is no Federal statute requiring an FFL holder to have/maintain any type of P&C insurance.

Insurance is never one size fits all. Depends on your intended operations and assets. Most think about the liability side, but you also need to consider property- both yours and that of customers' in your custody.

Your business is a machine shop. Period

I would be very careful about how application questions are answered, and read the documents! Some operations may be excluded (firearms), and failure to honestly and completely disclose your full scope of operations can result in a denial of a claim. Zero point in spending $$ on a policy that isn't going to cover a claim should you have one.

I was a commercial p&c agent in a prior life- consult a professional.

 

[shortgrass]

You Icorporated your business. You have LLC. No insurance needed?

A LLC is not "incorporated", It is a "limited liability company", separates business assets from personal assets. Better protections than being a sole proprietor, but not 'fool proof'. Too lengthy a discussion for here, best to do your own homework, and consult an attorney. LLC laws can differ from state to state.

 

[rijndael]

I would also mention that you really need to understand what "Piercing the Corporate Veil" means. You quickly undo many of the LLC protections by bad business habits.