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When you think about starting your business in New Mexico, a lot of visions come to mind. You probably think about how you’d like your business to grow, and you imagine all the ways you can help your community.
It’s less likely that you think about the risks your business may face, though, and we can’t blame you. Imagining worst-case scenarios isn’t fun, and worrying about them isn’t productive. Instead, take a few minutes today to learn about New Mexico business insurance, find a policy, and move on.
Business insurance can help you cover the costs associated with accidents or lawsuits your business could face. When you’re insured, you gain peace of mind that your business is ready to weather any storms; after all, the average claim for customer injury or damage is a whopping $30,000.
Without New Mexico business insurance, you might be liable to pay that out of pocket.
Businesses with insurance coverage, on the other hand, can file a claim and potentially use their policy to pay for damages. The simple act of being proactive and getting insured today could protect you from a shocking bill in the future.
If you’re looking for a plan to cover things like bumps, bruises, breaks, and falls, look no further than general liability insurance in New Mexico. As the name suggests, general liability insurance covers a broad range of situations, such as:
Even simple accidents could spiral into hefty medical bills or even lawsuits. Here are a few scenarios where general liability insurance in New Mexico could protect a business owner’s finances:
Without general liability insurance, the barber could have to pay those medical bills out of pocket. If the business were insured, the barber might be able to use the policy to cover those medical expenses.
Even if the costs are minimal, an uninsured business owner would have to dip into the funds they were saving for marketing, hiring, or upgrades. A general liability insurance policy could help the locksmith pay for damages and keep their business savings.
A general liability policy could defend the lawsuit and pay any settlements up to the coverage limit.
Are you required to have business insurance in New Mexico? The answer is, it depends. Requirements for general liability insurance in New Mexico can vary, particularly based on your occupation and location.
If your business has an insurance requirement, it’s usually listed on your state or local business license application. Occupation-specific licenses and insurance requirements exist on the state level, as well as with your county or city.
Examples of New Mexico occupations with general liability insurance requirements include:
Since general liability insurance in New Mexico can cover accidents ranging from minor to severe, we recommend it for many business owners. Simply Business works with over 80 types of businesses. We also have some business-specific guides to licensing, such as how to get a contractor license in New Mexico.
Business insurance isn’t just for the doom-and-gloom scenarios, though. Some added benefits of having coverage include:
If you're unsure if your business could benefit from general liability insurance in New Mexico, you can speak with one of our licensed insurance agents at 855-724-4013. Our online quote tool also can help take you from uninsured to comparing custom quotes in less than 10 minutes.
Some businesses are less at risk for physical accidents than they are intellectual accidents. If a disgruntled client believes your work harmed them in some way, they could sue you for negligence.
If your business didn’t do anything wrong, you could possibly just have to pay the legal fees. Even a simple slip-up, like a videographer's deleted wedding footage, could lead to damage costs.
Professional liability insurance in New Mexico can help businesses that offer services or advice cover the costs of damages and lawsuits.
Typically, professional liability insurance can cover:
Requirements for professional liability (PL) insurance in New Mexico can vary. Some occupations may need to show proof of insurance to get their state or local business license. For example, real estate agents need errors and omissions coverage, and companies that work with the city of Las Cruces may need $1,000,000 in PL coverage.
Often, though, the decision to get insurance is up to the business owner. The businesses that can benefit from professional liability coverage include:
Something to keep in mind is that if the state or local government doesn’t require insurance for your profession, you can use your coverage as a competitive advantage. Going a step above similar businesses in your area could make you stand out to potential customers.
The more employees you have, the more projects you may be able to take on. There’s something else to consider when hiring — you may have to meet New Mexico workers compensation insurance requirements.
Workers compensation insurance can pay for costs related to an employee who gets injured on the job. Coverage typically includes:
Most businesses with three or more employees need New Mexico workers compensation insurance, with few exceptions. One exception to this rule is the construction industry, where having just one employee requires you to have workers comp coverage.
Be mindful that even part-time and seasonal workers count toward your total number of employees, along with family members who earn a wage.
If you have fewer than three employees and don’t work in construction, you can still opt into coverage if you want it.
While the three main policies outlined above cover many accident scenarios, your business still may have unique weak spots. Here are a few other types of business insurance in New Mexico for you to consider:
Commercial property insurance. If you use a lot of tools or equipment in your business, you may want a commercial property insurance policy. This plan could help replace lost or stolen tools or equipment and get you back to work faster.
Commercial auto insurance. Every vehicle in New Mexico needs insurance coverage. If you plan to use a vehicle during work, ask your insurance agent if your current policy covers business use of your vehicle. If not, you may need additional coverage.
The benefit of New Mexico workers compensation is that it helps both the employer and the employee. When coverage is in place, employees know they’ll be taken care of if their job leads to an injury. Employers also benefit from workers comp insurance, as workplace injuries are typically expensive.
The average workers comp claim is $41,000. Since it’s in everybody’s best interest to minimize workplace accidents, the state takes safety seriously.
Each business with a New Mexico workers comp premium of at least $15,000 annually must receive an annual safety inspection. Each safety inspection considers common hazards in your industry, analyzes your workplace, and provides a corrective plan.
These inspections could help you save money in the long run, since your workers comp cost could depend in part on your accident history.
Balancing the budget can be critical for small business owners. That means the thought of adding a new monthly expense can make you apprehensive, especially if your state or local government isn’t requiring it.
The good news is that New Mexico business insurance costs are typically proportional to your actual business. Generally, business insurance costs depend on:
There are ways to save money on insurance, such as bundling policies, choosing a higher deductible, and comparing monthly and annual premium payment plans. While all of this variability benefits you, it makes giving an average estimated insurance cost nearly impossible.
Telling you how much your New Mexico business insurance will cost is about as straightforward as giving a definite answer on how much a house costs. It depends! That’s why the best thing to do is compare free custom quotes.
Ready for one-on-one pricing help? You can chat with our licensed insurance agents at 855-724-4013.
As an entrepreneur, you know that you need to turn talk into action when it comes to business insurance. Remember that you don’t need to figure out every detail about your New Mexico business insurance today — just take the first step.
To make it easier for you, we’ve put together a five-step process to follow.
Check for state-level business license requirements. Since insurance rules usually appear on business license applications, start your search there. You can review occupation-specific licenses on the state level here and here. You also could reach out to New Mexico trade associations for resources and guidance.
Check for New Mexico workers compensation requirements. The New Mexico Workers’ Compensation Administration has answers to common questions plus contact info if you have additional questions.
If you don’t have insurance requirements, reflect on which policies you want to investigate. When you don’t need to show proof of insurance to operate legally, you have more time to learn about and compare policies.
Talk to local business owners about which policies they like, review our insurance FAQs, or speak with an agent about your concerns at 855-724-4013.
You should celebrate every win as a small business owner, and getting insurance is definitely noteworthy. Once you have a policy, you can download a Certificate of Insurance(COI). Go ahead and mention your insurance coverage on your website, marketing efforts, contracts, and more.
Having insurance coverage is a benefit for you and your customers, so make sure they know you have it.
This content is intended to be used for informational purposes only. It is not intended to provide legal, tax, accounting, investment, or any other form of professional advice.
*Harborway Insurance policies are underwritten by Spinnaker Insurance Company and reinsured by Munich Re, an A+ (Superior) rated insurance carrier by AM Best. Harborway Insurance is a brand name of Harborway Insurance Agency, LLC, a licensed insurance producer in all 50 states and the District of Columbia. California license #6004217.