Latest news with #USCCA
Daily Mail
13-05-2025
- Business
- Daily Mail
The chilling insurance policy more Americans are buying... and what it says about gun violence in the US
More Americans are taking out a drastic insurance policy as gun ownership and stand-your-ground laws continue to spread across the country. Around two million Americans now have self-defense insurance for incidents where they may shoot or kill another person while being attacked or fearing for their own life. These policies, which tend to fall between the regulatory cracks, can cover legal fees, provide attorneys or provide bail or the costs of a civil lawsuit brought by victims and their families. Critics call these businesses providers of 'murder insurance', while others claim it is a natural consequence of increased gun ownership and stand-your-ground laws, The Wall Street Journal reported. Stand-your-ground laws, though varying in detail between states, argue that an individual has the right to use force to protect themselves against an intruder or to defend their own life. Policies with companies such as U.S. Concealed Carry Association (USCCA) and their main rival U.S. Law Shield can cover a range of incidents from shootings to threatening another person with a gun, so long as there is a plausible self-defense claim. There are also upgraded plans that can include grisly details such as crime-scene cleanup costs and cover for minor children, as well as TSA-violation expenses and accidental-discharge costs. Fees can range between $11 and $59 a month depending on the provider and the level of coverage selected. For these businesses, the proof of the need for their existence is in how many of their clients have been represented and later exonerated after self-defense shootings. 'There's literally thousands of cases that have gone to trial that we have defended our members and exonerated them from charges,' USCCA's founder and owner Tim Schmidt told The Wall Street Journal. However, there are limitations to the coverage these policies will provide. Many policies will not cover shooters who are intoxicated at the time of the incident. While others will not represent those who have shot a family member. Self-defense insurance leaders told the Journal that their membership has doubled in the last five years. The businesses saw a large uptick in members following the protests that followed the murder of George Floyd by a Minneapolis police officer in 2020. There was a 40 percent rise in pre-purchase background checks for firearms in 2020 compared to the year before. Membership to such businesses has doubled in the last five years One business, CCW Safe, said its membership doubled in the last five years and now sits between 100,000 and 150,000 members. USCCA, which has around 860,000 members, is among the largest in the industry. As a result of such a tailwind these businesses are now highly profitable. USCCA is 100 percent owned by Tim Schmidt and his ex-wife, and the pair also own three private jets, the Journal reported. According to the Journal's analysis, the company's membership revenue last year was around $300 million. The number of clients who actually end up needing a defense attorney for a self defense shooting are actually very small. The businesses claim they use profits to put on training classes for their members, advising them on when to use force or not, as well as teaching them about the criminal justice system. 'We're the No. 1 firearms and self-defense training organization in the country,' Schmidt told the Journal. U.S. Law Shield, which has around 600,000 to 700,000 members, only spent around 15 percent of its revenue on its clients legal expenses in recent years, according to insurance filings. 'The number of people who ended up with charges is minuscule. That's why they made so much money,' former U.S. Law Shield attorney Stanley Marks told the Journal. 'We're very profitable,' president of U.S. Law Shield Kirk Evans admitted.
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Business Standard
12-05-2025
- Business
- Business Standard
Self-defence insurance booms in US, critics call it 'murder insurance'
The number of Americans purchasing self-defence insurance in the United States has surged in recent years, according to a report by The Wall Street Journal. Industry executives stated approximately two million individuals have enrolled, with some companies reporting their membership has doubled over the past five years. Coverage is not restricted to shooting incidents; most providers will defend members charged with other offences, such as gun-related threats, provided there is a credible self-defence claim. Many companies feature premium plans that may include coverage for crime scene cleanup (in homes or vehicles), expenses related to Transportation Security Administration (TSA) violations, costs associated with accidental discharges and protection extending to spouses and minor children. 'Murder insurance' This has led to criticism from gun-control advocates who say the practice could foster more violence. Some are calling it 'murder insurance', and say that it is being marketed in a way that feeds on the nation's racial divisions. Critics say that rather than promoting personal responsibility and protection, it encourages gun owners to take action and not worry about the consequences. Guns Down, a gun-control group formed in 2016, is one of the many groups to criticise the insurance policy. While the US Concealed Carry Association (USCCA) and US Law Shield dominate the market, approximately six medium and small competitors also operate in this industry. Monthly premiums vary from roughly $11 to $59. These insurance providers offer various services, including bail assistance and criminal defence attorneys. Certain policies also cover expenses related to defending civil lawsuits filed by shooting victims. The companies' marketing strategies, sometimes featuring gun giveaways, include video testimonials from customers who used firearms in self-defence and avoided penalties. Insurers hold power to deny and limit claims The fine print in these policies reveals that companies typically retain broad discretion to deny a member's claim, sometimes conducting their own investigations to determine its validity. Certain plans exclude coverage if the member was intoxicated during the incident or if it involved shooting a family member. Many also limit members to using the company's own network of attorneys. USCCA's policy states that coverage ends if a member is convicted of a violent crime after claiming self-defence. It also allows the insurer to recover legal fees or other costs, though the company says it has never exercised that option. Houston-based US Law Shield, which operates in 46 states, reports having between 600,000 and 700,000 members paying $10.95 to $54.90 monthly. The company does not release its financial data, but insurance filings for its Florida and Virginia entities indicate they spent roughly 15 per cent of their revenue on legal expenses for member claims in recent years. By comparison, medical and professional liability insurers typically allocate 60 per cent to 75 per cent of premium revenue to direct claim costs, according to ratings agency AM Best. Minimal regulation, limited financial disclosure The rapidly growing industry often operates with minimal regulation and limited financial disclosure requirements. Certain states, including New York and Washington, have pursued legal action to block the sale of such coverage, at times arguing that it violates laws prohibiting insurance for intentional illegal acts. Some providers claim their offerings are not insurance but rather prepaid legal services or membership plans, which are not held to the same regulatory standards. US Law Shield, for instance, functions as an insurer in some states and a prepaid legal plan in others, stating it complies with all applicable state laws. The industry is also highly profitable, with companies typically allocating only a small portion of their income to client defence costs, according to a Wall Street Journal analysis of insurance filings and other data. Gun ownership in the US About 40 per cent of US adults report living in a household with a gun, with 32 per cent saying they personally own one, according to a June 2023 survey by the Pew Research Centre. Gun ownership varies based on political affiliation, gender, type of community and other factors. Approximately 45 per cent of Republicans and Republican-leaning independents report owning a gun, compared to 20 per cent of Democrats and Democratic-leaning individuals. In terms of gender, 40 per cent of men say they own a gun, while 25 per cent of women report the same.
Wall Street Journal
12-05-2025
- Wall Street Journal
Did You Shoot Somebody in Self-Defense? There's an Insurance Policy for That.
Within an hour, a USCCA attorney called to represent him. But after Huston was arrested and charged with attempted murder, he says the USCCA lawyer told him the case was a difficult one and advised him to plead guilty to a lesser charge. He went out and found a new lawyer, who got the charges dismissed. Even though USCCA also paid for the new lawyer, Huston quit his membership shortly after the two-year legal saga ended.
