Business insurance covers a wide range of situations that could otherwise result in financial loss. As a first-time business owner, you should consider insurance as essential as a telephone, computer, mission statement, or business plan. To learn more about insurance and its benefits, use this guide to answer some of your questions.

What to Know About Business Insurance

How does insurance protect your business?

Every business comes with its own set of circumstances and risks, which might include owning a store or office property, hiring a large team of staffers, or transporting products or equipment in company-owned vehicles.

An insurance plan is customized to meet the unique needs of your operation. All aspects of the plan serve to safeguard your company’s finances when faced with an accident or lawsuit.

What policies are available?

General liability covers third-party claims when customers or clients are injured, and product liability covers costs resulting from defective products manufactured or designed by the business. In New Mexico, companies with three or more employees must provide workers’ compensation insurance.

If your operation requires employees to drive while on the job, commercial vehicle insurance can cover liability, injury, and property damage for accidents involving company-owned cars and trucks. Commercial property insurance will cover the repairs for fire and storm damage to your storefront or warehouse.

What factors affect costs?

It depends on the size of your business and its various needs. Factors that influence price include the number of employees you have, the value of the business's assets, and any industry-specific risks.

For example, jewelry stores carry valuable products and have a higher risk of burglaries, which can increase insurance costs. You'll also need to consider how much personal liability you're willing to assume to offset the risks associated with owning a business.

Where can you get business insurance?

Don't think of insurance as a one-size-fits-all prospect. You need a comprehensive plan that takes every facet of your business into account.

It's important to get insurance from a skilled and experienced agent who knows how to personalize a plan that will best serve your company. An independent agent is often the best resource, as they can check multiple providers, get you the best rates, and assemble the policy plans that will ensure your success.

When you're ready to explore business insurance solutions, contact Reid Insurance Group. Since 1945, they’ve served southeastern New Mexico and western Texas. They offer business and personal policies for all clients, needs, and budgets. Look out for your business and its future by calling (575) 396-3645. Visit the website to request a quote.