New Mexico Contractor Insurance

If you own a small business in New Mexico, you’re one of the 154,405 small firms in this state. The construction industry is actually among the most popular here, since 15,274 of the small businesses in New Mexico involve construction. Another fact to know about this area is that the real gross state product increased by only 1.5 percent, which is a little slower than the USA’s gross domestic product growth of 2.2 percent. (Source: BEA). And though the unemployment rate in this state is a little higher than the national average, it did decrease from 6.8 percent to 6.5 percent in 2014. (Source: BLS). Now that you know a few statistics about businesses in this state, find out how New Mexico contractor insurance can assist you.

New Mexico Contractors Need The Following Insurance

Coverage for Third Party (GL): If you ever have visitors come to your worksite or even your office, you need to make sure you have general liability. This protects them in case they get hurt, since it pays for any medical treatment that may be necessary after they are injured on your property. It also pays for the repairs that may be needed in case a visitor’s personal property is damaged at your workplace. In this way, general liability also protects you and your business, since if your New Mexico contractor insurance does not include it, you will be personally responsible for medical bills and repairs to personal property.

Tools & Equipment Coverage (BOP): No matter what kinds of tools and equipment you use in your construction business, you need to make sure they are protected in case they are ever lost, damaged, or stolen. When you add tools and equipment coverage to your New Mexico contractor insurance policy, you can expect to have your tools of the trade quickly replaced when necessary. This coverage extends to both rented and purchased tools and equipment.

Employee Coverage (WC): About 4,280 of the construction firms in New Mexico employ up to 499 workers. If your small business is in this category, you need workers compensation. When you add this to your New Mexico contractor insurance policy, you can make sure your employees are protected. This is because workers compensation will cover the costs of medical care and lost wages when any employees are injured at work.

Business Vehicle Insurance: Driving to different construction sites is a necessity in this business. That’s why you need business vehicle coverage to be part of your New Mexico contractor insurance. When you have this type of insurance, you will be covered if you ever cause a car accident on the way to a worksite. You should make sure your employers also have this coverage, since their personal car insurance policy will not cover accidents they cause while driving for your small business.

Bond: When you include a surety bond on your New Mexico contractor insurance, you are essentially guaranteeing your services. As a result, if you ever neglect to live up to the terms of a work contract, any fines that you are assessed will be paid by your insurance policy.