Business owners face numerous risks on a daily basis. Business insurance mitigates a wide variety of these risks, whether you’re concerned about work injuries affecting your staff or want to keep essential equipment secure. The following are a few of the reasons why business owners should find the right coverage.

Why You Should Secure Business Insurance

1. You May Be Required By Law

Most employers are required to carry workers’ compensation. New Mexico business owners are also required to purchase commercial coverage for all vehicles owned by the business. Failure to do so can result in fines, while also leaving you personally liable for lost income and medical costs in the event of an accident.

2. It Protects Against Loss of Income

If your business is unable to operate due to damaged equipment or storefront construction, you might lack your primary source of income temporarily. A business owner's policy supplements the lost income until the operation is up and running again. Damage can take weeks or months to remedy, and with the right coverage, you won’t need to worry about earning a living during this time. 

3. It Reduces Your Liability

General liability protects against lawsuits filed by third parties, such as customers. Imagine a customer sustains an injury at your business and sues you for damages. A general liability policy would cover any damages awarded by the court, as well as administrative costs and attorney fees.

Professional liability covers a business that provides a professional service to clients. If an accountant offers advice to a client, and that client loses money after applying that advice, he might file a lawsuit against the accountant. Without liability insurance, the accountant would be personally responsible for all costs related to litigation. 

While implementing business insurance is essential, choosing between different policies can be challenging. Reid Insurance Group in Lovington, NM, is happy to help guide clients through the process. With over seven decades of experience, this insurance company offers a wide range of commercial policies, including equipment coverage, workers’ compensation, and surety bonds. Visit them online for the complete listing of personal and business insurance. Or call (575) 396-3645 to schedule an appointment.