New Mexico is home to approximately 150,000 small businesses, which equates to 99 percent of all companies.
These small businesses employ around 300,000 people across the state, so it becomes imperative for small business owners in New Mexico to protect their business with the right insurance policy.
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Different Types of Small Business Insurance in New Mexico
State laws in New Mexico require small businesses to have one or more insurance policies, most notably:
New Mexico Business Owner’s Policy Insurance
Often referred to as Errors & Omissions insurance, professional liability insurance in New Mexico helps protect your small business if they falter in the services they provide.
For example, say you are operating a small chartered accountant firm, and you provide incorrect financial advice that costs your client thousands of dollars in damages or says you are a software developer who lost their client’s files, professional liability insurance will cover the cost of damages.
Professional liability insurance in New Mexico can help protect several different types of professionals including accountants, real estate agents, tax preparers, and technology professionals.
New Mexico General Liability Insurance
General liability insurance in New Mexico coverage helps protect your small business from a wide range of claims including bodily injury, property damage, personal and advertising injury, and much more.
This versatile type of insurance coverage is geared towards protecting your business from damage and/or injury to third parties.
Further, New Mexico small business general liability insurance can help cover medical costs for injuries to third parties.
For example, a customer walks into your store, and slips and falls and breaks his back, your New Mexico general liability insurance policy will cover the costs of medical bills.
This type of insurance coverage also covers damage to rented property, medical payments, reputational harm, advertising errors, etc.
New Mexico Commercial Umbrella Insurance
This type of coverage is basically a top-up to a basic general insurance liability insurance policy.
It covers expensive lawsuits, that result in significant losses to the small business.
This type of policy can enhance the coverage of your regular New Mexico general insurance policy and is a great option for any small business owner.
New Mexico Commercial Auto Insurance
New Mexico commercial auto insurance covers any vehicles used by your company for business purposes.
Even if you have personal car insurance, you will need commercial vehicle coverage to protect the vehicles against physical damage, accidental damage caused to third parties, etc.
For example, if your commercial van is used to deliver food to customers, and gets in an accident, causing injury to a pedestrian, commercial auto insurance will pay for both medical and legal costs.
New Mexico Workers’ Compensation
All small businesses in New Mexico with three or more employees are required by law to have workers’ compensation insurance.
This type of insurance coverage pays for medical coverage, and a portion or full lost wages for employees in the event they are injured on the job.
Workers’ compensation insurance does not cover costs related to employee personal injury or no-job-related damages, but only injuries or illnesses related to their employment.
If you choose to opt-out of workers’ compensation insurance, you may be putting your small business at a big risk of financial damage, because you can face lawsuits from the state as well as your employees.
New Mexico Cyber Insurance
If you run a small business that stores customer data that is mostly stored in the cloud or other online storage tools, getting cyber insurance should not be an option.
Cyber insurance covers you in case this data is stolen, downtime, and recovery costs.
A small business that stores information such as names, addresses, credit card numbers, social security numbers should have cyber insurance.
If you refer to any small business insurance blog in New Mexico, you will know how important it is to get small business insurance coverage.
With regards to costs, New Mexico small business insurance is highly affordable, and the rate of your coverage will depend on the type of business and the type of coverage you opt for.