Albuquerque Business Liability Insurance

Albuquerque business liability insurance can defend you and your company against most third-party claims. However, you still need to be aware of the situations in which you can be held personally liable. Furthermore, you need to make sure you purchase the appropriate business insurance policy (or policies) for your New Mexico company, so there are no unexpected gaps.

If you're offering a professional service, for example, you need to have New Mexico professional liability coverage. If you're selling or manufacturing a product, you need to have a policy that covers you for lawsuits against your products. And, of course you need to understand what your basic Albuquerque business liability insurance covers, and whether there are any other specific policies you need.

Protect Your Personal Liability

Many people mistakenly assume that creating an incorporated company or LLC protects them from all third-party claims. Furthermore, some company owners believe that their Albuquerque business liability insurance will cover them in personal situations. Obviously, these assumptions are not always correct, and it's important to understand the situations in which you may be held personally liable.

First of all, if you sign personally for a loan for your Albuquerque business, you are personally responsible for that loan. Also, if in any way you fail to treat your business as a separate entity, you may be on the line if a lawsuit is brought against your company. A good Albuquerque business liability insurance agent can help you understand how to properly operate your Albuquerque company so that you will not be held personally liable in a lawsuit.

Note, also, that your Albuquerque business liability insurance will not cover you if you engage in any illegal activity. If you are acting irresponsibly, cheating, or stealing, don't expect your general business insurance to defend you or your New Mexico company. Also, if you personally hurt or attack someone, your Albuquerque business liability insurance will not protect you.

General Liability Versus Malpractice

Albuquerque business liability insurance will defend you against most third-party claims, related to property damage, personal injury, and advertising injury. For some New Mexico businesses, a general policy is sufficient. However, if your Albuquerque business includes offering advice, constructing houses, or anything that involves professional risk, you may need malpractice coverage as well.

Malpractice, also called errors and missions, will protect you or your employees if you face a lawsuit related to professional negligence. In other words, if you make a mistake due to carelessness or lack of knowledge, malpractice will protect you. Basic Albuquerque business liability insurance, however, will not defend you in a case related to professional error.

Some people believe that malpractice is only for doctors and lawyers; however, architects, technology specialists, and many other NM professionals have malpractice coverage. If your profession involves potential mistakes, you probably need errors and omissions as well. If your uncertain, an insurance agent can help you determine whether you need malpractice for your Albuquerque company.

What About Product Liability?

If your Albuquerque, NM company manufactures, produces, or sells any kind of product, you may need a policy to cover lawsuits related to your product. In other words, if you manufacture ovens, and a faulty oven burns someone's house down, your general policy will not cover you. Actually, your product liability policy may not cover you either: if it was a professional error, you would need malpractice to defend you.

However, if an oven you manufacture explodes by no fault of your own, product liability insurance would cover you. Note: a general policy would not protect you in this case. So, if you're creating or selling any kind of product (even teddy bears) you probably need an insurance policy to cover third-party claims related to your products.

Luckily, if you're producing or selling a product that's harmless, your insurance will be relatively inexpensive. Insurers base your premium on calculated statistical risks, so if your product is not dangerous, your risk is low. The same is true for your general policy. The doctors in riskier professions, such as gynecologists, pay more because they are the most likely to get sued.

Depending on what your Albuquerque company does, you may need more than general, professional, or product coverage. For example, if you or your employees will be driving for work on a regular basis you may want a commercial policy. Or, if you're selling alcohol, you may need a liquor policy.

Unfortunately, protecting yourself and your business from third-party claims isn't as simple or straightforward as you might hope. The best way to insure your company is to talk to an Albuquerque business liability insurance agent. An agent can help you assess your particular needs and risks and sort out which policies you need. Furthermore and experienced agent will help you choose a high-quality insurer with competitive rates.

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