There are over 151,000 businesses operating in New Mexico, with around 1,800 in Alamogordo. Education, healthcare, and construction are at the most common industries in Alamogordo, but the city is home to a wide range of business types, both large and small. Whatever their size, Alamogordo business owners need business insurance to protect their assets and their employees.
Business insurance is not a single insurance policy. Rather, it is a comprehensive set of policies and customized endorsements tailored to the unique risks of every business. Alamogordo business owners need to understand the unique risks they face, and then work with an independent insurance agent to find the right policies and coverage to protect their assets.
Liability Insurance for Small Businesses in Alamogordo, NM
If your business were sued for injuring someone because of an error, negligence, or a faulty product, how would you pay for attorney fees, court costs, and any judgments levied against you? Many small businesses would be forced to declare bankruptcy in the face of these kinds of claims. But with liability insurance, you can have the coverage you need to defend yourself, pay the injured party, and continue to focus on your business. A commercial general liability (CGL) policy offers broad protection from lawsuits. It covers your legal costs, medical expenses and other damages for the injured party, and other expenses related to a liability claim against your business. A CGL policy has two major coverage components:
- Premises liability insurance: Covers third-party damage, injuries, or illnesses that occur due to an accident on your business property
- Product liability insurance: Covers third-party damage, injuries, or illnesses caused by a defect in a product your company produces, sells or promotes
It’s important to understand that CGL policies typically exclude coverage for certain types of lawsuits and claims. Many businesses need additional liability policies or endorsements that specifically cover other exposures they might have. Ask your agent if you need commercial auto liability coverage, professional liability insurance, or any other types of tailored liability coverage.
Cyber Liability Insurance for Alamogordo Businesses
Almost every business has at least some cyber risk exposure that needs to be addressed. There are numerous potential liability exposures that can occur while using, storing, or transferring data electronically for business purposes. Some examples include:
- Failure to protect personal or corporate information that is stored on computer systems, networks, smartphones, laptops, and even paper files.
- Personal injury claims stemming from your website, blog, or social media accounts
- Business interruption and loss of income for a client or partner because of a hacker, security breach, or power outage that affects your computer system, network, or website.
Any business that handles electronic data is susceptible to cyber threats. Data can be breached and in many ways, from stolen laptops and other portable devices to rogue employees, theft of digital assets, human error, and more.
- Number of identity theft complaints in New Mexico per year: 1,611
- Ranked 23rd highest for identity theft complaints in the US
- Only 22% of businesses have a cyber/data breach response plan
If you are sued because of a data breach or other cybercrime, your business is responsible for paying legal fees, court-ordered judgments or settlements, and any other court-related costs. You will also need to notify your customers of the breach, provide them with credit monitoring services, and undertake extensive public relations efforts to repair your public image. These expenses could be insurmountable for a small business.
Cyber liability coverage protects your business assets by paying for your legal defense, settlements and judgments, and even PR and other related expenses. The cyber insurance market is still evolving, so finding the right policy can be challenging. Be sure to ask an independent agent about how cyber liability insurance can help you protect your Alamogordo business.
Property Insurance for Small Businesses in Alamogordo
Fires, floods, and severe storms can cause serious damage to your Alamogordo commercial property. Severe property damage can jeopardize your ability to operate.
- Number of federally declared disasters in New Mexico since 1953: 86
- Most common reasons for declared disasters in New Mexico: Fires and Floods
Commercial property insurance ensures Alamogordo businesses that they can repair, rebuild, or even relocate if disaster strikes. Property insurance covers your company’s physical assets, including buildings and office space, merchandise, inventory, tools, machinery, computers, office furnishings, and more when physical damage occurs. Just like commercial liability insurance, commercial property insurance doesn’t cover everything in every situation.
Business owners often need additional coverage for specialized equipment and machines, or for materials, inventory, or tools that are in transit or in use at job sites. Ask your insurance agent about equipment breakdown coverage or inland marine coverage to supplement your commercial property insurance policy. And be sure you discuss how to properly value your business property so you have the right amount of coverage to rebuild after a disaster.
Business Interruption Insurance for Alamogordo Businesses
Events like severe storms or fires can force you to close your business while you make repairs or rebuild your building, warehouse, factory, or other commercial property. The lost income and ongoing expenses during the rebuilding process can be impossible to overcome without the right insurance coverage. Business interruption insurance can be your financial lifeline during this critical period.
It protects your earnings if your business is temporarily unable to operate because of physical damage after a covered event. It helps you pay for ongoing expenses like rent and employee salaries, and it also reimburses you for lost income and even relocation fees. Business interruption insurance is typically part of a commercial property policy or a business owners policy (BOP). A local independent insurance agent can help you assess your risks and help you get the coverage you need for your Alamogordo business.
Workers’ Compensation Insurance for Alamogordo, NM Businesses
Workers’ compensation insurance makes it possible for workers to pay their medical bills and be compensated for lost wages if they are injured at work. The New Mexico Workers’ Compensation Act requires employers to purchase workers’ compensation insurance that provides benefits to injured workers regardless of fault. Any New Mexico employer with three or more employees must purchase workers’ compensation insurance. This includes charities, nonprofits, and religious organizations. Owners, family members, and part-time and seasonal workers must be included in the employee count.
Partners and sole proprietors are excluded from coverage but can elect to include themselves. Corporate officers and LLC members are included in coverage but can exclude themselves if they own 10% or more of the company. Exempted officers must still be included in the employee count used to determine if coverage is required. Other exemptions from New Mexico workers’ compensation coverage include:
- Real estate agents and domestic employees
- Independent contractors
- Farm and ranch workers who spend the majority of their time growing or harvesting produce, meat, or dairy products
Construction employers with one or more employees must purchase New Mexico workers’ compensation insurance. New Mexico has a private workers’ compensation market. You can purchase it from any private insurance carrier or agency that is licensed to sell it in the state. Businesses can also self-insure with approval from the New Mexico Workers’ Compensation Administration
Employee Benefits for Small Businesses in Alamogordo, NM
Employee benefits are an important component of your comprehensive business insurance plan. A good employee benefits plan that includes health insurance, life insurance, vacation and sick time, and more, helps companies attract and retain top employees. What’s more, employee benefits are linked to a decrease in absenteeism and improved employee morale.
- Average amount spent per year on healthcare coverage by New Mexico businesses: $267,330
- Ranked 17th for highest medical insurance costs in the US
- Average annual cost of health care in New Mexico: $5,145/person or $15,207/family
There are many different health and life insurance policy types and options available for you to choose from, as well as numerous laws and regulations that you must comply with. A local independent agent can help you find suitable coverage at a competitive price.
Why Work with an Independent Agent?
Shopping for business insurance can be overwhelming, even if you own a small business with a simple business model. That’s why working with an independent insurance agent is the best way to make sure you get all of your questions answered and find the best policy for your needs and budget. Local independent agents can get quotes from multiple insurance companies, so you’ll be able to compare coverage and rates and make the best choice.
Contact a local agent today to get started.
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