Insurance that Protects Your Company Against Certain Claims

NM business liability coverage

Liability insurance is designed to protect a company’s assets and also pays any medical costs incurred if someone suffers an injury while on your property, or for property damages or injuries caused by you or your employees. If you opt to buy NM business liability coverage it will pay the cost of your legal defense and any settlements or awards in the event you are found liable in a lawsuit. Typically this includes compensatory damages and punitive damages.

Because we live in such a litigious society, your business needs liability insurance. This has long been considered a wise investment, one that doesn’t cost very much considering the benefits, with annual premiums ranging only around $750 to $2,000, depending on your particular line of business and your coverage needs. Why risk being uninsured and fighting your case in a courtroom where you could wind up losing thousands, if not millions of dollars?

Determining your coverage needs

General liability insurance can be purchased separately but it can also be included as part of a Business Owner’s Policy (BOP) which bundles liability and property insurance into one policy. If you have a BOP, check to see what your liability coverage limits are. You just may benefit by purchasing additional coverage.

Your business location can also be a factor that comes into play when deciding the amount of coverage you need. Every business comes with its own concerns along with any perceived risks associated with it. For example, a building contractor will likely need a greater amount of coverage than say, a consultant. Take the time to speak to a licensed broker for advice on what will best protect your own interests.

Any general liability policy will outline the maximum amount the insurance company will pay against a claim. For example, if your business gets sued for $400,000 for medical costs associated with an injury that happened at your place of business, and this is coupled with $150,000 in legal fees, and your coverage maxes out at $400,000, then you would wind up being responsible for paying the difference of $150,000.

Purchasing a commercial umbrella insurance policy under your nm business liability coverage package increases your coverage limits and will pay out once your liability policy is exhausted.


Insurance Risk Advisors