Very interesting article - it’s behind the WSJ paywall however you can use archive.is to view a copy:
https://www.wsj.com/us-news/law/self-defense-insurance-policy-379336cb
Some snippets:
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.
“I knew I was innocent—there was no way I was going to take a guilty plea,” said Huston, a 49-year old disabled Air Force veteran.
The companies are also highly profitable, often spending only a small fraction of their revenue on defending clients, a Wall Street Journal review of available insurance filings and other industry data shows. USCCA’s owner, who lives in Wisconsin, owns three private jets, according to federal aviation records.
Houston-based U.S. Law Shield, an industry pioneer that started in Texas in 2009 and now operates in 46 states, says it has about 600,000 to 700,000 members paying $10.95 to $54.90 a month, plus another 300,000 to 400,000 spouses and minor children added to plans by members.
The company doesn’t disclose its financials, but insurance filings for two of its entities that operate in Florida and Virginia show they spent about 15% of revenue on legal expenses to cover member claims in recent years.Medical and professional-liability insurers, by contrast, generally spend about 60% to 75% of their premium revenue on direct claims losses, according to ratings firm AM Best.
“The number of people who ended up with charges is minuscule. That’s why they made so much money,” said Stanley Marks, a now-retired Denver attorney who was under contract to represent U.S. Law Shield members from 2013 to 2020.
Kirk Evans, president of U.S. Law Shield, said the cost of defending members in some states exceeds revenues, and when including other expenses such as member training and education the company’s loss ratio is in line with many insurers’. Even so, he said, “we’re very profitable.”
David Edmondson of Dunsmuir, Calif., said the post-George Floyd unrest spurred him to sign up with U.S. Law Shield in 2020. He would need the coverage about six weeks later.
Owner of a sauerkraut business, Edmondson traveled to sell his product at a farmers market in Sacramento in early July 2020 and was sleeping in his van to save money. A man tried to break in with what appeared to be a two-by-four around 2 a.m. He said despite warning the man away, the intruder busted his van windows with the piece of wood and hit him on the head with it after entering the vehicle.
“I told him I had my weapon, and he mocked it,” said Edmondson, 60. “The next time he leaned in, that was when I used my gun.”
He fired one round, striking the man in his forehead. He then dialed 911 and reported the shooting, but didn’t stay on long before calling a U.S. Law Shield toll-free number for help. The suspect, who was 32, died at the scene, according to a police report.
A U.S. Law Shield-appointed attorney represented Edmondson and no charges were filed.