This bill mandates that individuals who own firearms must obtain and maintain liability insurance specifically covering damages resulting from the negligent or accidental discharge of a firearm. The insurance must have a minimum coverage of $250,000 per occurrence and must be obtained by February 15, 2027, for those who already own firearms at the time the law takes effect. Additionally, the bill establishes criminal penalties for non-compliance, classifying the failure to obtain or maintain the required insurance as a misdemeanor, with subsequent violations escalating to gross misdemeanors and fines of at least $1,000 for repeat offenders. An exception is made for law enforcement and active military personnel while performing official duties.

Furthermore, the bill introduces a firearm liability insurance surcharge that licensed insurers must collect, which is a percentage of the gross premiums for firearm liability insurance policies. This surcharge will not be considered a premium for other purposes and must be clearly stated in billing documents. The funds collected from this surcharge will be deposited into a newly established "gun harm reduction account" aimed at addressing issues related to gun violence. Both sections of the bill are set to take effect on January 1, 2027.