New Jersey governor signs handgun liability insurance requirement into law
Gun owners must obtain coverage for any loss resulting from the ownership, use, maintenance or operation of a firearm.
As the number of mass shooting events has grown, so have concerns over general gun safety control. Exactly how much control a state may assert over its citizens and their guns is a topic of hot debate. Gun control measures in multiple states have been criticized by pro-gun groups or even struck down entirely for being unconstitutional. For example, in N.Y. State Rifle & Pistol Ass’n v. Bruen, the Supreme Court ruled that New York’s requirement for citizens to demonstrate a particular need for self-defense in order to receive a permit to carry a handgun in public violated both the Second and Fourteenth Amendments. Not all such measures, however, have fallen flat.
In October 2022, we wrote about a gun safety bill from the New Jersey Senate that, in reaction to the Bruen decision, proposed an additional insurance requirement for state citizens with a concealed-carry permit. That bill, adopted by the New Jersey Senate on December 5, was signed into law by Governor Phil Murphy on December 22, 2022. The new law includes the following:
- New background check and training requirements for those purchasing a firearm.
- An updated list of locations where guns may be carried and where they are prohibited.
- Refined regulations concerning the sale of firearms and who may purchase them.
- An additional insurance requirement for individuals with a conceal-carry permit.
This article focuses its analysis on the insurance requirements for those with a conceal-carry permit.
- (New section) a. Every private citizen who carries a handgun in public in this State shall maintain liability insurance coverage insuring against loss resulting from liability imposed by law for bodily injury, death, and property damage sustained by any person arising out of the ownership, maintenance, operation or use of a firearm carried in public wherein such coverage shall be at least in an amount or limit of $300,000, exclusive of interest and costs, on account of injury to or death of more than one person and for damage to property, in any one incident.
The new insurance requirement applies to all private New Jersey citizens who carry a handgun in public. Under N.J. Stat. §2C:39-1, a “handgun” means any pistol, revolver or other firearm originally designed or manufactured to be fired by the use of a single hand. It is important to note that this insurance requirement only applies to those who carry a handgun in public. Merely owning a handgun does not trigger the insurance requirement.
Those wishing to carry a firearm in public are required to have a personal liability policy providing coverage for loss arising out of the liability imposed by law for the bodily injury, death and property damage sustained by any person arising out of the ownership, maintenance, operation or use of a firearm carried in public. Coverage limits must be at least $300,000.
This is a large requirement — if an insured’s gun is stolen while the insured is carrying the gun in public, will they be held liable for injuries caused by the person who stole the gun and used it to rob a bank? Since a registered gun can be traced back to the owner, it seems like a possibility.
Homeowners and other personal property forms generally have a section for personal liability and medical payments to others. Claims for “bodily injury” or “property damage” that result from an “occurrence” are covered as long as the insured is legally liable and there are no exclusions.
Therein lies the rub. Intentional acts are excluded unless the insured is using reasonable force to protect persons or property. The law is requiring insureds to obtain insurance for any loss that results from the ownership, use, maintenance, or operation of a firearm. The homeowners policy will not cover all situations. Likewise, while some firearms associations might provide coverage to members for true firearms accidents, no insurance policy will cover intentional acts of any kind, including mass shootings. Any expected or intended injury, even if the injury or damage wasn’t what the insured expected or intended, or a different person was injured than the person the insured intended to injure, is excluded. For example, if the insured goes to hit another patron at a bar and misses, striking a different person, then the injury is still excluded. The insured intended to cause injury; it doesn’t matter that he had bad aim.
Another important note about the policy limit is that the limit must not include either interest or costs. The $300,000 limit only covers the damages for which the insured is found liable. Interest and expenses are handled outside the policy limit.
- Proof of liability insurance, as required pursuant to subsection a. of this section, shall be produced by the person carrying a handgun in public, within a reasonable amount of time following any injury, death, or property damage alleged to have been caused by the person carrying the handgun in public. This requirement shall be satisfied by delivering a full and complete copy of the applicable policy or policies of insurance that meet the standards established by subsection a. of this section and that were in force at the time of the injury, death, or property damage. Notwithstanding the provisions of this subsection, disclosure of policy information under this section shall not constitute an admission that the alleged injury, death, or property damage is subject to the policy.
Information concerning the insurance policy shall not be admissible as evidence at trial by reason of disclosure pursuant to this subsection. The disclosure shall be confidential and available only to the injured person, representative of the decedent, or owner of damaged property and the attorney representing the injured person, representative of the decedent, or owner of damaged property and personnel in the office of the attorney.
If the insured has caused injury or death to another party by use of a firearm, the insured must provide proof of insurance. Acceptable proof of a policy is a full and complete copy of the policy itself. Unlike auto policies, personal liability policies do not provide cards showing proof of insurance. The policy must meet the requirements as set out in the bill, and the policy must have been in force at the time of loss.
When an insured produces the aforementioned proof of insurance, it only shows that the insured complied with the law and therefore is not subject to penalties listed in the bill. Producing this proof, however, does not necessarily mean that an incident is covered. If a firearms incident was an intentional act there is no coverage for the incident.
It is not uncommon for insurance information to be categorically excluded from evidence that may be produced at a trial. The fact-finder, whether judge or jury, may give insurance undue consideration when weighing the evidence presented and determining the amount of damages due to an aggrieved party. However, it makes sense that those affected by an incident, their attorneys, and the attorney’s office staff should have access to information about the insured’s policy. It would affect pretrial negotiations and potentially the amount of requested damages.
- A violation of this section shall be a crime of the fourth degree and shall constitute full and sufficient grounds for revocation of a permit to carry a handgun issued pursuant to N.J.S.2C:58-4.
The penalties for violating the insurance requirements are stiff. Noncompliance with the insurance requirement is, in and of itself, grounds for revoking a permit to carry a handgun. On top of that, a crime of the fourth degree is punishable by a $10,000 maximum fine, up to 18 months in prison, or both under the New Jersey Code of Criminal Justice.
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