A federal district court ruled that an insurer is not obligated to provide defense or indemnity to a firearms manufacturer. The case is Granite State Ins. Co. v. Rainier Arms LLC, 2025 U.S. Dist. LEXIS 57651 (S.D.N.Y. 2025).

The underlying suits

Rainier Arms LLC (Ranier) is a company based in Washington state that manufactures and sells firearms and parts for firearms. In 2022, the New York Attorney General (NYAG) and multiple cities in the state of New York sued Rainier and other gun-makers for their purported role in the proliferation of “ghost guns,” so named because their component parts do not bear a serial number. These “unserialized” parts can then be used to create a fully-functioning firearm. Without a serial number, these guns are much more difficult to trace.

According to the lawsuits, Rainier and the other gun-makers, in direct violation of state and federal law, do not require background checks of the individuals purchasing these “unserialized” parts. The absence of a background check consequently makes it possible for individuals who are not legally permitted to possess a firearm, such as convicted felons and domestic abusers, to obtain the parts for and then build their own gun.