New Mexico business insurance
There are two types of insurance coverage every business in New Mexico is required to have, and several that are recommended. Here we’ll go into how you can protect your business.
“The Land of Enchantment” may have been nicknamed for its sprawling natural landscape, idyllic scenery, and rich culture and history, but business owners seem to be enchanted by its entrepreneurial prospects, too.
Small businesses make up 99% of all New Mexico businesses, employing over half of the state’s workforce at almost 340,000 people.1 The largest portion of small business employment comes from companies with less than 20 employees—making New Mexico a shining example of small but mighty; and a great place to start an enterprise of your own.
To do that, you’ll need business insurance. Follow along as we explain the legally required types of New Mexico business insurance, and the coverages that can help protect your business as it scales.
All employers in New Mexico with three or more employees are legally required to have workers’ compensation insurance. Workers’ compensation insurance exists to safeguard employees from financial impact related to injuries or illnesses sustained on the job. As a business owner, it also protects you from liability related to employee injuries. Workers’ compensation covers expenses and lost wages caused by the following:
If you drive a car, truck or van as part of your business operation, you’re required to have auto liability insurance or qualify as a self-insurer. Auto liability insurance can protect you and your business from the financial consequences of the following types of third-party claims resulting from auto accidents involving your vehicle:
Bodily injury – If you get into an accident and the driver or a passenger of the other vehicle is injured, your auto bodily injury liability insurance covers the costs arising out of bodily injury, including medical expenses and death benefits.
Property damage – In the above scenario, it’s extremely likely the other car sustained some damage as well. Your auto policy’s property damage liability coverage insures the cost to repair or replace the other party’s vehicle.
Also, depending on the use of your vehicle, the kind of vehicle or if your vehicle is registered or titled under your business name, you may need a commercial auto insurance policy to secure the appropriate coverage and vehicle registration, and avoid penalties.
General liability insurance (also known as CGL—for commercial general liability) is one of the most essential and effective ways to safeguard your business. It protects your business from the financial consequences resulting from liability related to third-party non-employee bodily injury or third party property damage that arises from your business operations. It also provides coverage for personal and advertising injury. Without general liability insurance coverage, you could be in financial trouble in the event of an unfortunate accident involving a customer or other third party.
If you provide professional services and your advice is alleged to have led to one of your clients suffering a financial loss, professional liability insurance can help. When a former customer or client claims—rightly or wrongly—that a mistake in your work led them to suffer a financial loss, professional liability insurance provides you with investigation and defense of the claim as well as making payments of any settlements or judgments.
Inland marine insurance is designed to protect that vital equipment you use to make your business run smoothly. It protects your business by covering costs associated with accidentally damaged, lost or stolen equipment that is on the go with you. Whether you have an expensive tool collection, pricey construction materials, or other equipment you transport to a job site, having inland marine insurance is a no-brainer. At Thimble, we offer inland marine insurance, or Business Equipment Protection as we call it, with coverage for up to $5,000 worth of business property and equipment.
Commercial property insurance protects your company’s building and the contents inside it from all kinds of risks of physical loss or damage, including theft, vandalism, fires and natural disasters such as floods, storms or earthquakes. Commercial property insurance is often included as part of a Business Owners’ Insurance Policy, or BOP.
No matter what your business is, if you’re in New Mexico, you’ll benefit from being insured. If a non-employee slips and falls due to a workplace hazard or you accidentally damage a client’s property while working in their home, the last thing you need is to pay out-of-pocket for damages. In New Mexico, Thimble’s business insurance covers:
At Thimble, the cost of your business insurance depends on a variety of factors. The amount of risk involved in your business, the industry you’re in, and the amount of business you do all play a part in determining your policy premium.
Another important factor is your location. A more populated area like Albuquerque might have higher premiums on average than less populated locations like Gallup or Roswell.
Finally, Thimble will look at factors such as your crew size, coverage amount and the number of years you’ve been in business before determining how much your premium will be.
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The breathtaking landscape, natural resources and favorable tax policies make New Mexico a wonderful place to both live and run a business. Part of starting and growing a new venture is making sure you have all your bases covered. When it comes to insurance, not having the right kinds of coverage can cause some serious setbacks.
Even if you’re just starting up, you can find New Mexico business insurance coverage that’s right for you. Through Thimble, you can get a quote for your general liability insurance, professional liability insurance or Business Equipment Protection in less than a minute and if you decide to buy, you’ll be able to access your policy and Certificates of Insurance (COIs) in your inbox instantly.