Many small businesses in New Mexico are centered on the state’s rich culture and heritage, which includes color, art, music, dance, and landscapes. New Mexico has an affluent heritage of Indian, Anglo, and Hispanic cultures; more so than many other states in the country. One of the largest industries in New Mexico is tourism due mainly to its culture and art; so a tourist business in New Mexico can do quite well. Additional industries that thrive in “The Land of Enchantment” include manufacturing of food products, transportation equipment, lumber, chemicals, and stone, clay, and glass products. Agriculture in New Mexico counts for about two-thirds of the state’s income, which includes livestock, dairy and cattle. Small business owners in the state should acquire insurance to protect their assets; the following explains the different types of business insurance available in New Mexico:
Standard Business Insurance Coverages in New Mexico
Business Owners Insurance in New Mexico is an insurance policy held by an establishment, also known as a BOP, as a comprehensive small business insurance bundle that offers various types of liability coverages in a solitary package. A BOP integrates two principal coverages in a single policy: property insurance and general liability. The insurance coverage for business professionals’ transfers risk away from the leader of the organization to the insurance company by offering security for a variety of liability types, such as buildings, equipment, and legal liabilities. Typical indemnity claims that business owners insurance coverage protects you from are: injury to an employee, income loss, specialized liability claims, important papers, equipment breakdown, fire, authorized liability claims, employee corruption, money and securities, and property claims. Additional components for the New Mexico business may be supplemented from the original BOP coverage depending on the possible risks of the entity.
General liability insurance in New Mexico is carefully organized to give protection to small businesses from financial burdens that can surface from careless acts, omissions, or both, caused by the company or their workers that may result in physical harm or property damage. Some types of exposures usually covered under general liability insurance are contractual liabilities, liabilities from merchandise sold, and accidents on the premises of the organization. The injury or damage might be from carelessness or unplanned. General liability insurance for companies in New Mexico may be a single policy or can be part of joint policies.
A package policy is a unique type of insurance policy for a company executive that includes two or more different kinds of insurance into one insurance policy, also called a bundle. A typical package policy obtained by New Mexican businesses will combine general liability insurance (described above) and commercial property (described below); although a package policy may be designed to contain nearly every type of coverage, depending on the desires of the business. A package policy is accommodating to a firm as it allows a good deal of flexibility to develop a policy mostly for the distinguishing needs and risk exposures of the entity.
Commercial Property Insurance in New Mexico is accessible protection for a variety of New Mexico-based commercial properties, and includes, important papers, building, materials, equipment, furniture, inventory, and personal property. Commercial property insurance provides protection against a variety of perils, including windstorm, hail, explosion, fire, robbery, natural disasters, and lightning strikes. Different industries may benefit from this sort of insurance, including pottery retailers, not-for-profit entities, glass manufacturers, and service-oriented organizations like accounting firms.
Any organization in Santa Fe, New Mexico that has employees working for them, will need Workers’ compensation insurance to offer coverage against employee occupational injuries or work-related illnesses. Workers’ compensation insurance in New Mexico is a no-fault, state-mandated insurance policy that offers benefits to employees who suffered injuries or an illness while performing business-related duties. Because the state of New Mexico has a requirement for any entity with employees to carry workers’ compensation, they may be subjected to fines and civil penalties if they fail to carry it, and might even cause the company to be liable for the cost of injuries sustained by their employees. By having workers’ compensation insurance, workers benefit from medical care and lost pay coverage with the guarantee that they will not sue the company as a result of the injury or illness.
In the state of New Mexico, if your business owns at least one vehicle, you should be protected by commercial auto insurance. Commercial auto insurance in New Mexico offers financial protection to business proprietors and their employees by providing coverage for a company’s use of vehicles such as trucks, vans, and cars. Commercial auto insurance provides protection against damages and medical costs that result from vehicle accidents, as well as vandalism and damage from hail storms and similar natural disasters. Coverage for businesses in the New Mexico include a variety of vehicles — whether they are rented, owned, leased, or hired by the company, along with vehicles owned by the drivers and used for business purposes. For this latter reason, it’s recommended that firms acquire a commercial auto insurance policy, referred to as a non-owners commercial auto insurance policy — if employees use their own vehicle for business related tasks.
Commercial umbrella insurance in New Mexico begins at the point where your general liability insurance and your commercial auto insurance or other liability insurance stops. Your organization will benefit from umbrella insurance as a result of the coverage limits of your existing liability policies, and because they may not cover all expenses if an unfortunate or catastrophic event occurs. Commercial umbrella insurance in New Mexico is a vital resource that fills in the gaps and covers various exclusions in your primary business liability coverage. Umbrella insurance is a wonderful way to have additional protection for property damage, bodily injury, or other types of liabilities.
Some Additional Business Insurance Coverages in New Mexico to Consider
Errors and Omissions insurance policies offers southwestern New Mexico companies and professionals protection against lawsuits and claims completed by clients or customers for neglectful duties, careless acts, errors, and oversights made through business operations that resulted in a loss of salary or output on the part of the customer or client. Errors and Omissions insurance in New Mexico covers legal defense and court costs, along with settlements which is detailed on the insurance contract. Primary care physicians often require malpractice insurance, so small business owners that offer services or consulting advice, either directly or with subcontractors, should consider errors and omissions insurance.
Professional liability insurance in New Mexico provides additional security for industry professionals, such as financial analysts, auditors, and general contractors, from having to pay the total legal cost of defending against a claim of negligence, error, failure to perform, or omission made by a client as well as damages owed in that claim. The coverage’s most important focus is on the financial loss on the part of the client from this type of assumed claim with respect to a product or service provided by the employee. Professional liability insurance may provide claim coverage, even if the legal actions turn out to be unverified. Professional liability insurance in New Mexico territory is required by law in various types of professional practices, including medical and legal, but is also required by contract in other industries.
Employment Practices Liability Insurance in New Mexico, also known as EPLI, provides small business owners with security against accusations of discrimination, unlawful termination, sexual harassment, breach of contract, pay law violations, false imprisonment, emotional suffering, libel, slander, mental torment, neglectful hiring and promotion decisions, and offensive claims. Enforced and regulated by the Equal Opportunity Employment Commission (EEOC) Employment practices liability insurance is based on the laws, acts, and protection from VII of the Civil Rights Act of 1964, Age Discrimination in Employment Act, and Family and Medical Leave Act.
Fidelity Bonds in New Mexico
Fidelity bonds in New Mexico are a specific type of insurance offered to small companies in order to protect against losses, like fraud, embezzlement, or theft by a number of workers. Since reimbursement from employee dishonest practices is typically not obtainable because the funds have already being spent, fidelity bonds indicate an important safeguard for small business owners in Albuquerque, New Mexico who would otherwise have to suffer these monetary losses. Even if your business has extra security against these kinds of acts such as employee screening, internal controls, and careful supervision, it isn’t always enough. Losses suffered from worker thefts of money, property, or securities are all covered under fidelity bonds insurance in New Mexico. There are three chief types of fidelity bonds including business service bonds, standard employee dishonesty bonds, and ERISA bonds.
Surety Bonds in New Mexico
A surety bond is a essential agreement or contract shared between three parties: the principal, obligee, and surety (insurance company). It represents the guarantee they will pay a specified sum if a party fails to meet a commitment, like fulfilling the terms of the contract. A surety bond protects the receiver from loss if the contract is not fulfilled, while the surety company takes on the liability for not performing. A surety bond is normally required for financial compensation. Owners of New Mexican companies may require a surety bond to guarantee payment of utility bills or state sales taxes, while a contractor may need to post a bond to secure work or be qualified for licenses. While surety bonds in New Mexico are more commonly used in the construction industry, surety bonds are also used by mortgage brokers, medical suppliers, automobile dealerships, health club owners, notaries public, and others. Since many small entities need and make use of bonds, a wide array of types and features of surety bonds in the state offer a range of guarantees.
Small businesses in New Mexico flourish due in part to the high level of tourism, which attracts thousands of visitors to the cultural state each year. In the case of an unforeseen peril or natural disaster though, additional business insurance coverage is essential as these types of events or accidents can occur when you least expect it. Additional risk exposures like theft or damage can also be covered when you acquire business insurance that expands beyond what is covered under your standard business insurance policy for your art gallery, gift shop, or other small business. New Mexico business owners receive the best options available when it comes to business insurance, which may be related to the vehicles your company owns for business purposes, protection against litigation, employee fraud, and other types of liabilities.