The NRA is having a rough go of it lately. The organization is fighting for its life in New York. They took a big setback down in Florida. There’s been an awful lot going on for them.

The last thing they really wanted to deal with was losing insurance, too.

Unfortunately, that’s precisely what happened.

Lloyd’s of London will not renew the group’s directors and officers insurance when coverage ends in August, according to multiple sources. The NRA is creating a new $5 million fund to cover potential lawsuits against executives and board members while it searches for a replacement policy. The money will be drawn from current NRA investments.

NRA board member Phillip Journey told The Reload the fund was announced during the closed executive session of the gun group’s Saturday board meeting. He said board members were authorized to talk about it after the session ended, though. He believes the fund was created to alleviate concerns about liability raised by a number of board members.

“It was apparent from the comments that there are several board members that have expressed concerns,” Journey said. “This was their attempt to address the concern, knowing that the policy expires in, golly, less than 40 days.”

Lloyd’s did not respond to a request for comment. The elite business group has a reputation for insuring high-risk clients, and Journey said its decision not to renew the NRA’s policy is bad news.

“I mean, if Lloyd’s won’t insure you, who the hell will?” he said.

It’s a fair question, to be sure. I mean, Lloyd’s is known to insure pretty much anything and everything, including the body parts of famous actresses.

However, there may be a legitimate reason why Lloyd’s is unwilling to renew the policy.

A second source with knowledge of the Lloyd’s move called it a “bombshell” likely driven by the risk NRA leaders could face lawsuits related to their management of the organization. This is a major question in light of the suit brought by New York Attorney General Letitia James (D.).

Basically, in light of what we’ve heard and what we can see, Lloyd’s seems to have decided the NRA is just a bad bet.

Insurance companies survive because they manage risk. If they think a client is too risky, they opt to let them find someone else to meet their insurance needs. Don’t believe me? Pick up a few DUIs and a dozen speeding tickets, maybe an accident or two, and see how easy it is to find car insurance, then get back with me.

At that point, you’re considered a risk.

Lloyd’s appears to have looked at everything they know about the NRA and its board members and decided that the risk is just too much. While they may insure high-risk individuals, there’s high risk and then there’s high risk. The concerns about New York state lowering the boom not just on the NRA but also on individual board members that Lloyd’s would then be obligated to pay out.

Which is why the NRA is setting up their own fund. They still have deep enough pockets, after all, so they might as well.

Still, it’s never a good sign to have Lloyd’s of London decided you’re too high of a risk for even them.