New Mexico law mandates that businesses with three or more employees, regardless of whether they are full-time or part-time, carry workers’ compensation insurance to help pay for medical bills related to workplace injuries and illnesses. If your company is in the construction industry, you will need workers’ compensation insurance if you have just one full or part-time employee. Additionally, any vehicle owned by the business must have commercial auto insurance coverage with at least the below minimum liability requirements:
- $25,000 bodily injury liability per person
- $50,000 bodily injury liability per accident
- $10,000 property damage liability per accident
While it may be tempting to skimp on insurance to save money for your business, failure to carry the two required insurances in New Mexico can have a devastating impact. Consequences of not having commercial insurance can include the following:
- Fines and Jail: Failure to have workers’ compensation insurance violates New Mexico state law and subjects the business owner to numerous penalties and even jail time for repeated offenses.
- No Safety Blanket: If a customer trips and falls outside your builder or is sued after missing a key client deadline outlined in the contract, you’ll want insurance to help pay for the required remediation. Not having coverage means you’ll be on the hook for all the costs.
- Loss of Clients: Many contracts will require that you have adequate insurance coverage, and failing to do so may result in losing work.
- Loss of Property: If you rent space for your business, a landlord may decide not to work with you if they learn that you do not have liability insurance or any other coverage
At Family Insurance Associates in Ruidoso, NM, we understand the time, commitment, and expense required to run a successful business. Consequently, we’ll work with you to find the perfect commercial insurance policy for your needs.