Business insurance
Anticipate events and plan for the future
Insurance protects a business and its owner(s) against disaster, theft and other liabilities. Many types of insurance are available to small businesses. If a business owner is actively involved in their business, then they are at risk for liability even if the business is a corporation or limited liability company. Insurance can provide a source of protection and funds to help cover these liabilities.
Business property insurance
Business property insurance protects your company’s assets in the event of a natural disaster or other calamity. Three forms of coverage are generally available:
- Basic provides coverage for events like fire and storms
- Special form offers broader coverage but still has exceptions
- Business owner form provides coverage for property and many business-related assets with a combination of property and liability insurance.
For a home-based business, separate contents insurance may be necessary because homeowner's policies may not cover business equipment. Contents insurance protects your business equipment from hazards such as fire, flood, or theft.
Liability insurance
Liability insurance protects a business against lawsuits and other claims. Three types include general liability, product liability and professional liability insurance.
Workers’ compensation insurance
In New Mexico, a business with more than three employees must purchase workers’ compensation insurance. This provides coverage in case an employee is injured while working.
Other types of business insurance
- Business Interruption insurance protects against loss of revenue when a business is forced to close down.
- Disability insurance protects against lost income in case of an owner is disabled and unable to carry on the business.
- Key person insurance helps to compensate a business for financial losses due to the death or long-term disability of a key person.
Consider buying employee health insurance. Providing employee benefits like medical, dental, and disability benefits [link: health insurance tutorial] can help keep employees healthy and loyal. Also consider bonding individuals in your business who deal with financial transactions.
To find out more about business insurance in New Mexico, visit the New Mexico Public Regulations Commission Insurance Division at http://www.nmprc.state.nm.us/id.htm or talk to an insurance agent who specializes in business insurance.