There are over 151,000 businesses operating in New Mexico, with over 12,000 in Santa Fe. Tourism plays a significant role in Santa Fe’s economy, while other industries—such as hospitality services, educational services, and professional services—are also prevalent. Santa Fe business owners need a comprehensive business insurance program to protect their assets and their employees when something goes wrong. Since every business has unique risks, it’s important to understand all of your exposures and find tailored insurance policies to cover them. A local independent insurance agent can help you assess your risks, compare policies and quotes, and make an informed decision.
Liability Insurance for Small Businesses in Santa Fe, NM
Accusations of negligence are among the most expensive claims made against business owners. Businesses are sued for everything from simple trip and fall incidents to major food or product safety concerns. Without appropriate liability coverage, one lawsuit or unexpected event can force you to close your doors. Commercial general liability insurance, or CGL, is the most basic form of business liability insurance. It can protect your business from costs related to bodily injury and property damage claims. It pays for medical expenses, legal costs, and settlements or judgments.
Your CGL policy even covers costs related to personal injury claims such as libel and slander. To protect your business from more specific types of threats that are excluded from CGL coverage, you may need to purchase additional liability policies. Talk to your independent insurance agent about why you might need employment practices liability insurance, environmental liability insurance, or professional liability insurance to appropriately protect your assets from lawsuits.
Cyber Liability Insurance for Santa Fe Businesses
Cyber liability insurance is important for any business that uses electronic information. If you are sued because of a data breach or some other cybercrime, your business could be responsible for paying legal fees, court-ordered judgments or settlements, and any other court-mandated costs. Your CGL policy may not appropriately cover these costs. Cyber liability claims are also extremely costly in terms of fines, public relations costs, and other expenses you must pay on behalf of your affected business partners and customers.
- 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
While cyber liability policies continue to evolve because of the ever-changing nature of the threats, most cyber liability insurance policies protect your business assets by covering your legal defense costs, as well as any settlements or judgments that you are ordered to pay. Cyber liability insurance also helps businesses repair their reputations and damage to their brands in these situations by providing coverage for PR and other related expenses. Be sure to ask an independent agent about how cyber liability insurance can help you protect your business.
Property Insurance for Small Businesses in Santa Fe, NM
Your commercial property can be damaged in a variety of ways, from fires and floods to severe storms, break-ins, and vandalism.
- Number of federally declared disasters in New Mexico since 1953: 85
- Most common reasons for declared disasters in New Mexico: Fires and Floods
Whether you own your building or lease your office space, you need some type of protection for your business property. Commercial property insurance covers damage to a building and its contents (computers, office equipment, and furniture, supplies, fixtures, etc.) if it is damaged by a weather event, fire, theft, vandalism, or other covered perils. An independent insurance agent can help you determine if you need more than just a basic commercial property policy.
If your New Mexico commercial property is in an area that is prone to flooding, you probably need flood insurance designed for businesses. Flood insurance is available from the National Flood Insurance Program (NFIP), and your local insurance agent can help you purchase coverage.
Business Interruption Insurance for Santa Fe Businesses
What would happen if your business could not operate for an extended period because of a fire, severe storm, or some other disaster? Your commercial property insurance covers the cost of physical damage to structures, equipment, inventories and material goods in the event of a loss. But you need business interruption insurance to reimburse you for lost revenues when your business is unable to operate after a disaster.
Business interruption coverage, or business income coverage, protects your earnings if your business is unable to operate because of damage after a fire, hail, wind, equipment breakdown, or some other covered event. If you are forced to close your doors for an extended period in order to make repairs, this coverage pays for rent, employee salaries, lost income, relocation fees, and more. Business interruption insurance is usually a part of your commercial property policy or a business owners policy (BOP). An independent insurance agent can help you assess your risks and help you get the coverage you need.
Workers’ Compensation Insurance for Santa Fe, 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 employer with three or more employees in New Mexico 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 of New Mexico. Businesses can also self-insure with approval from the New Mexico Workers’ Compensation Administration.
Employee Benefits for Small Businesses in New Mexico
Employee benefits like group health insurance, group life insurance, and short- and long-term disability insurance serve a critical purpose for your employees and can often mean the difference between a satisfied workforce and one that is unhealthy and disengaged. Many employees see their benefits as an important part of their overall compensation plan. Offering a comprehensive set of employee benefits, including group insurance plans, vacation and sick time, wellness programs, and other perks, can help you attract and retain top talent, as well as encourage wellness and healthy living.
- Average amount spent per year on healthcare coverage by New Mexico businesses: $267,330
- Ranked 38th 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 employee benefits options available, and not every business needs the same types of plans or programs. A local independent insurance agent can help you find suitable coverage at a competitive price.
Why Work with an Independent Agent?
There are many business insurance products and options available to protect your Santa Fe business. You probably have a lot of questions, and a local independent insurance agent can help. An independent agent can work with insurance companies that specialize in the type of work that you do. And your agent can help you assess your risks and get quotes from multiple, highly rated insurance companies.
Find an agent in or near Santa Fe to get started.
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