In New Mexico, there are 154,804 small businesses. If you own a company that operates out of your residence, specific coverage is necessary. Home-based business insurance can be obtained through a trusted adviser.
An independent insurance agent can help you find a policy that fits your budget. They have access to several carriers so that you have options. Connect with a local expert for custom quotes in minutes.
What Is Home-Based Business Insurance?
In New Mexico, your home-based business may have coverage that extends from your homeowners policy. At other times, you'll need to obtain separate insurance. The following protection could be utilized for your home business:
- Liability insurance: Pays for a bodily injury, property damage, or slander lawsuits.
- Equipment breakdown insurance: Pays for the replacement or repair of business equipment damaged by a power surge, outage, and more.
- Business property insurance: Pays to replace or repair any business property damaged due to a covered peril.
- Professional liability: Pays for legal fees when you're sued due to possible faulty professional services offered.
What Does Home Business Insurance Cover?
Your coverage for your New Mexico business will vary depending on numerous risk factors. The type of business you run and your insured assets will be taken into account. Check out some options below:
- Homeowners policy coverage: If you simply do desk work from your home office and don't have any business property or any other risk exposures, then you may be able to extend coverage from your homeowners policy. This coverage will only give you your current liability limit, and that's pretty much it.
- Separate business policy coverage: If you have a more robust business with equipment, inventory, business property, and more, you'll need separate business insurance. These policies may need to come from your same home insurance carrier, depending on their guidelines. The policies can include general liability, commercial auto, business property, equipment breakdown, professional liability, and more.
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What Doesn't Home Business Insurance Cover?
Similar to your other business insurance policies, there are exclusions. Home-based business insurance will have specific limitations. Typical policies will not include the following coverages without adding them individually:
- Inventory: If you have business inventory, your policy will not provide coverage for its replacement or repair. You will need a business property policy that includes this protection.
- Business equipment breakdown: Equipment breakdown due to a power outage or some other cause will not be covered under your home or standard business policies without manually adding it beforehand.
- Customers on the premises: If you have customers showing up at your house to pick up items or come inside for business purposes, your policy could exclude this. Most homeowners policies will prohibit this risk. Some business policies may pick up this exposure, depending on what's involved.
- Commercial auto: If you use your vehicle to run your business, you may need a commercial auto policy. This is separate insurance that will need to be quoted and is not automatically included.
- Professional liability: If you offer professional services like accounting, you'll need to have your own professional liability coverage for any poor advice or negligence that could occur. Your standard business insurance policies will not provide coverage for this type of lawsuit.
Do Home-Based Businesses Need Insurance?
Business insurance is necessary no matter where your operation resides. In New Mexico, $2,205,237,000 in commercial insurance claims were paid in 2019. The losses you could sustain in your home-based business are a significant threat.
When you operate out of your residence, two things are at risk. Your personal assets and your professional investment are on the line at the same time. To avoid financial ruin to both, consider obtaining sufficient coverage.
How to Connect with a New Mexico Independent Agent
In New Mexico, several commercial insurance coverages may apply to your operation. Home-based business insurance is necessary if you want to avoid a large loss. A trusted adviser can review your policies for free.
When you work with an independent insurance agent, you'll have access to multiple carriers to get a policy that suits your needs and budget. They do the shopping for you at no additional cost. Get connected with a local expert to start saving today.
TrustedChoice.com Article | Reviewed by Jeffrey Green
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