You will likely need several policies to provide coverage for your business depending on the type of business you are in and any perceived risks associated with your operations. For example, a building contractor will need to purchase more coverage than a person whose job is being a consultant. Your business location is also another important factor when determining the types of coverage that will properly suit your needs. Some states tend to award more in damages to plaintiffs claiming personal injury than others.
A New Mexico Business Liability Policy, or general liability insurance, is vital and can be purchased on its own, but you also have the option to include this as part of a business owner’s policy (BOP) which bundles liability and property insurance into one policy. This can provide you with sufficient coverage at a savings. If you already have a BOP, see what your current liability coverage limit is as you may need to purchase additional coverage under a separate policy.
How much insurance is enough?
As with every other insurance plan, your general liability policy will outline the maximum amount the insurance company will have to pay in the event of a liability claim. For instance, if your business gets sued for $250,000 for any medical costs associated with an injury that occurs at your place of business, with an additional $100,000 in legal fees, this add up to $350,000. What if your coverage limits are $300,000? You would wind up being responsible for paying the difference of $50,000.
If you believe that you are on the higher end of the risk scale due to the type of products or services you provide, and you already have general liability insurance, you can opt for excess insurance, or umbrella insurance that will increase your coverage limits. This will cover you for situations in which your existing coverage won’t pay all your costs should you experience a claim against your business and are found at fault.
Your New Mexico Business Liability Policy will also cover claims of false or misleading advertising, including libel, slander, and copyright infringement. Speak to an agent today.