This is Tom, business risk advisor with the Hummel Group. We're going to talk about some insurance coverages to consider.

You're in the business of making, assembling, buying, selling or distributing guns or providing a place for others to enjoy the shooting sports. Insurance is likely a bit of a foreign language, and my role is helping a business owner like you to educate them, to empower them, to make a great business decision regarding the procurement of insurance coverage. So let's talk about a few commonly used tools to help construct a solid program of insurance.

Please keep in mind that this isn't a comprehensive list of all coverages. But rather it's applicable to those in the firearms industry. It's a flyover of those coverages commonly used to protect a business.

General liability. It's the foundation of any insurance policy. This coverage is designed to respond to circumstances in which bodily injury to a third party or property damage is experienced as a result of the operation. Additionally, it provides legal defense in the event of a claim. Product liability is often the reason why this coverage is purchased. It's common to see limits of coverage at a million dollars per occurrence in a two million dollar aggregate. If you rent or lease a building, the landlord will likely require this coverage in the lease agreement.

Property. Covering the building and contents including inventory is an important consideration. It's typical to see coverages within this segment that protect your business income and extra expenses in the event of a loss. Responds to natural disasters fires, water damage, and a host of other events that cause damage to the building or contents.

Cyber liability. This is probably the hottest topic in the world of risk management today. The coverage is designed to respond to data breaches, ransomware attacks, compromised financial information, and repairing damaged operational systems. Thousands of businesses are attacked daily. So proper security software and storage is a must.

Workers' compensation. Protecting your employees from injuries on the job is critical, especially in the difficult labor market. Most states will require you to carry this coverage. The intent is to pay claims related to employee injuries, lost wages, and rehabilitation to get back to work.

Every business operates differently, so I always encourage business owners to share the details of the operation, to ensure that a proper insurance and risk management plan can be developed.