I inherited a pre-64 Winchester Model 70, valued at around $4,000. I took it to a local gunsmith for a simple re-crown of the muzzle. When I went to pick it up, the barrel was botched—cut crooked and the bluing ruined by a vice slip. The gunsmith shrugged and offered me $200 for the “labor,” claiming his shop policy limited liability to the cost of the repair, not the value of the gun.
Key Takeaways
- Bailee Coverage is Mandatory: You need to ask the gunsmith for proof of “Bailee’s Customer” insurance. This covers your property while it is in their care, custody, and control.
- General Liability is Not Enough: A standard business liability policy covers slip-and-falls in his shop. It specifically excludes damage to property he is working on (the “Workmanship Exclusion”).
- Your Homeowners Won’t Pay: Your home policy covers theft or fire at the shop, but it rarely covers “poor workmanship” or “service errors” by a third party.
- Get it in Writing: Before leaving the firearm, sign a work order that states the current market value of the gun. This overrides his “shop minimum” liability waiver.
The “Why” (The Trap)
The trap is the “Care, Custody, and Control” Exclusion.
Standard business insurance policies exclude damage to personal property that is currently in the care of the business owner. This means if he drops your gun, his basic insurance pays $0.
He needs a specific “Gunsmithing Bailee” rider. If he’s a “kitchen table” gunsmith without insurance, you are effectively self-insuring his incompetence.
The Investigation (I Called Them)
I investigated how to protect a firearm when it leaves your hands.
CollectInsure (CIS)
- My Analysis: This is the gold standard for collectors. Their policy covers your gun while at the gunsmith for repair.
- The Win: If the gunsmith ruins it, CIS pays you the insured value, and then they sue the gunsmith (subrogation). You don’t have to fight him.
The Gunsmith’s Insurance (Lockton Affinity)
- My Analysis: I called Lockton (who insures many FFLs). They offer “Bailee Coverage.”
- The Catch: The gunsmith has to actually buy it. Many cheap out and skip this rider to save $500/year. You must verify it exists.
Standard Homeowners (Allstate)
- My Analysis: Denied. “Damage resulting from refinishing, renovating, or repairing” is a standard exclusion in an HO-3 policy.
Comparison Table
| Scenario | Gunsmith’s General Liability | Gunsmith’s Bailee Policy | Your Collector Policy (CIS) |
| Shop burns down | Denied (Property of others) | Covered | Covered |
| Smith scratches receiver | Denied (Workmanship) | Covered | Covered |
| Smith loses it | Denied | Covered | Covered |
| You sue Smith | Defends Smith | Pays You | Pays You |
Step-by-Step Action Plan
- Ask for the COI: Before handing over the gun, ask: “Can I see your Certificate of Insurance? Does it have Bailee coverage?”
- Take “Before” Photos: High-resolution photos of the finish, the screw heads (to show they aren’t stripped), and the bore. Timestamp them.
- [IMAGE: Photo of a pristine rifle receiver next to a dated newspaper]
- Appraise Before Repair: If it’s an antique >$5,000, get a quick written appraisal. It establishes the “Before” value.
- Use a Specialist: Don’t use the guy who builds AR-15s to re-blue a 1911.
FAQ
Can I sue him in Small Claims?
Yes, but collecting is hard if he has no assets. Insurance is better.
Does this apply to shipping it to the factory?
Yes. Manufacturers (like Ruger/Smith & Wesson) are self-insured and usually make it right. Local smiths are the risk.