Liability Insurance and Gun Control
Imagine if gun owners in New York are legally required to carry liability insurance? Well, the New York State Senate seeks to impose this requirement by way of Senate Bill S2857A. In fact, if implemented into law, gun owners would be required to purchase one million dollars of liability insurance, and to continuously maintain such insurance, to cover any damage resulting from the use of such firearm. This would amend the insurance law by adding a new “Section 2353.” The Justification set forth in the Bill is that “Injury and death by gun has increasingly become a problem in U.S. and in New York State. In the wake of recent mass shooting incidents in Aurora, Colorado and Newtown, Connecticut; there has been a nationwide attention on gun control and public safety.” The Justification cites to certain FBI Crime Report data.
Proponents of the Bill posit that the required insurance policies would protect innocent victims of gun-related accidents and violence who would be compensated for the medical care for their injuries. It is also believed that the gun ownership liability insurance policy will serve as an incentive for owners to implement certain safety measures and to take extra precaution with respect to use of gunds.
Some critics of the Bill deem the insurance requirement to be an unfair “tax” on honest gun owners, that will affect those in low income households, and an interference on the Second Amendment Right, under the U.S. Constitution, “to keep and bear arms.”
While on its face, this Bill may be designed to protect innocent victims of gun accidents, it fails to address the fact that not all owners of firearms that result in harm to victims, possess them lawfully. Thus, while negligent acts may be covered by a law-abiding citizen who who has a gun permit and purchases the required insurance, willful acts, such as mass shootings, would not be covered where the possessor of the firearm does not lawfully own it and/or comply with the insurance requirement, which, at $1 million, may be insufficient to address all injuries.
Notably, there are few express exemptions in the Bill though it specifically exempts police officers and active members of the military from its application. The Bill attempts to address the scenario of who is deemed the “owner” and therefore responsible if a fire arm is lost or stolen, and provides that it is the registered owner’s responsibility until reported to the police. The Bill’s penalties include the immediate revocation of an owner’s gun license for failure to maintain such insurance. Will this punishment increase public safety? Only time will tell but the Bill is a step towards gun control and the protection of those who are harmed by the use or misuse of guns.
As of March 28, 2019, the Bill is in the Senate Committee, Insurance Committee, thus, there is certainly more to come. This is against the backdrop of the New York State Department of Financial Services’ (“DFS”) recent $7 million Consent Order entered into with a broker who sold the NRA’s “Carry Guard” insurance program in New York. The Carry Guard program provides liability insurance to NRA members for firearm-related accidents and for legal costs in self-defense cases. DFS contended that the Carry Guard Program is illegal because it gives liability protection to gun owners for acts where there was “intentional wrongdoing” and was violative of New York Insurance Law. Significantly, Senate Bill S2857A, specifically contemplates liability insurance protection for “willful” acts.
