As the owner of a small business in New Mexico you understand the value of a New Mexico Business Liability Policy and how it will protect your business and your personal assets from legal claims and settlements, the size of which can lead to your financial ruin. Whether you work in Albuquerque, Santa Fe, Las Cruces, Roswell, Rio Rancho, or Clovis, having sufficient liability coverage is an important part of any small business plan.
Being properly insured is the only real way you protect your business. While everyone has their own unique set of circumstances, the type of business you operate, or products you manufacture, should help you determine how much commercial general liability (GL) insurance you’ll need. For most small businesses, between $500,000 and $1 million is considered sufficient. However, if you happen to operate a high-risk business, such as the building trades or a restaurant or retail business, with a high volume of customer interaction, you should consider increasing your coverage.
The protection a GL policy provides
This type of insurance is often bundled in a business owner’s policy (BOP), along with property insurance and other policies and this will ensure that you’re provided coverage in a variety of areas at reduced premium prices.
This coverage generally falls into one of four categories: bodily injury, property damage, personal injury, or advertising injury. It’s important to note that libel and slander fall under personal injury.
Bodily injury – physical damage to a person other than an employee at your place of business and injuries caused by you or an employee at a client’s home or work place
Property Damage – damage caused by you or an employee to someone else’s property
Personal Injury – libel, slander, copyright infringement, invasion of property or privacy, wrongful eviction, false arrest and similar acts that cause damage to a person’s reputation or rights
Advertising Injury – losses caused by your advertising
You must cover your business for legal defense and judgment costs in the event you wind up fighting a lawsuit, including defense against frivolous suits. Your New Mexico Business Liability Policy pays for judgments up to the limits of your coverage. Although it’s hard to predict whether your business will ever be sued, your commercial general liability policy helps to ensure you have cover against such risks.