Purchasing a New Mexico Business Liability Policy should be at the top of your list of must have coverage. This is true for practically any new company, as well as for those in business for some time. Regardless of the size of your particular operation, it’s important that you review your coverage regularly. As your business grows and changes, so do your insurance needs and requirements. Therefore, it’s only prudent of you to ensure your assets are properly protected.
Every business has certain exposures and risks they face daily, and while this is the cost of doing business, it shouldn’t be so costly that it could cause permanent damage to your operations. Make sure to purchase general liability insurance, perhaps as the cornerstone of your insurance portfolio.
Liability insurance works as a kind of safety net
Your liability insurance coverage helps to protect your company’s assets and pays certain obligations. For example, you may be required to pay medical costs, which may be incurred if someone gets hurt on your property or, in the event that there are property damages or injuries caused by you or your employees. Another valuable part of having liability insurance is that it also covers the cost of your legal defense, along with any settlement or award when you are found liable for damages. The policy is also designed to cover claims of false or misleading advertising (including libel, slander, and copyright infringement).
In any business model there are certain perceived risks. Understanding this will help you to determine how much coverage you may need and whether you might also benefit from the purchase of a commercial umbrella policy. This is intended to provide you with coverage beyond your primary limits.
Any products and completed operations exposures you may face should also be covered under your general liability policy. That way, if there is a claim of bodily injury or property damage stemming from a product that you market, and that fails to perform properly, you’ll be covered under the policy for this as well.
It’s important that you have your contracts properly reviewed for potential liability exposures so that you’ll not be faced with issues due to being underinsured or otherwise improperly insured. A New Mexico Business Liability Policy is a major step in protecting everything you’ve worked so hard for.