Carpenters Insurance New Mexico

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Carpenters Insurance New Mexico Policy Information

NM Carpenters Insurance

Carpenters Insurance New Mexico. As a carpenter, you provide an invaluable service to your clients; however, there is always a chance that an accident could happen or that your property could become damaged.

Carpenters may perform interior work only, exterior work only, or both. Exterior carpentry includes framing work, such as structural support for a new NM building or structure. Interior carpenters perform remodeling, repair, finishing or refinishing. Interior carpentry consists of either rough or finish work.

Rough work includes framing windows and doors, laying floor joists and subfloors, or stairways. Finish work involves hanging doors, installing baseboards and molding around doors and windows, and making or installing cabinets, shelving or other built-ins.

Whether you are a solo practice or you employ a crew, if you own a carpenter business, keeping yourself, your clients, and your employees (if you have them) protected needs to be a top priority. Commercial insurance coverage is the best form of protection you can buy.

Carpenters insurance New Mexico protects your carpentry business from lawsuits with rates as low as $47/mo. Get a fast quote and your certificate of insurance now.

Why Commercial Insurance Is Important

Someone could become injured on a job site or property could be damaged. When a catastrophe arises and you are liable, the results could be devastating. Medical bills, repairing or replacing property, and legal fees could drown you and ultimately destroy your carpentry business.

Having the right carpenters insurance New Mexico coverage will help to offset any financial liabilities that may occur, preventing you from having to pay for damages on your own. In other words, insurance will protect your business from significant financial losses. Furthermore, some types of insurance are required by law and you need to carry them in order to legally operate your business.

What Type of Insurance Do Carpenters Need?

There are several types of insurance policies NM carpenters should carry. Some are required and some are optional, but all are a valuable asset to your business. Essential carpenters insurance New Mexico policies include:

Commercial General Liability. No matter how big or small your business may be, general liability insurance is an absolute must. This type of insurance offers coverage for third party injuries and property damage, as well as legal fees and settlements.

For instance, if you or an employee damages a client's property, general liability insurance will help to pay for the repair or replacement of the damaged property. If that client files a lawsuit against you, this type of carpenters insurance New Mexico will also help to cover the cost of legal expenses.

Commercial Property. A business property insurance policy covers damages to your business, including the structure, the contents within it, and parts of the property surrounding it. For example, if a storm damages your building, someone steals equipment, or there is an act of vandalism, this type of insurance coverage will help pay for any repairs that need to be made and the replacement of stolen or damaged equipment.

Workers Compensation. If you employ a crew of NM carpenters, workers comp is vital. In most states it's required. This coverage protects your employees from any work-related injuries or illnesses that they may sustain.

If an employee suffers an injury while operating machinery, workers comp insurance will pay for medical bills, wages that are lost while the employee is unable to work, any rehabilitation that may be necessary, and a number of other things.

Business Auto. If you rely on cars or trucks for your business, having a commercial auto insurance policy is a wise idea. Should you be involved in an accident while driving a work van to a job site, this policy will cover the damages to vehicles involved in the accident, medical bills, and damaged equipment inside your van.

Who Should Carry Insurance Coverage?

Rough and finish carpenters aren't the only professionals who should carry the above-mentioned policies; any professional who performs carpenter-related services should protect themselves with insurance coverage, including:

  • Home, business, and framing contractors
  • Cabinet installers
  • Remodelers
  • Framers
  • Deck installers
  • Roofers
  • Construction companies

If you work in any facet of the carpentry industry, carrying the right insurance coverage is crucial.

How Much Does NM Carpenters Insurance Cost?

The cost of carpenters insurance New Mexico varies. The type of commercial insurance policy, the company that provides your coverage, the size of your business, and the liabilities that are associated with your business are just some of the factors that are taken into consideration when determining the cost of coverage.

New Mexico Carpentry Risks & Exposures

Property exposures at the carpenter's own location are usually limited to an office and storage of materials, equipment, and vehicles. If the carpenter does shop woodworking, fire can result from the flammability of wood, paints, varnishes, and wood dust. There should be adequate ventilation and a dust collection system.

Flammable varnishes and glues should be properly labeled, separated, and stored away from combustibles. Some carpenters store lumber in their yards, increasing the potential for fire loss. Three-sided storage structures are highly susceptible to wind damage.

Premises liability exposures at the carpenter's shop or office are generally limited due to lack of public access. Fires or fumes from woodworking and/or lumber storage operations can spread to neighboring businesses or homes. Outdoor storage may create vandalism and attractive nuisance hazards. Off-site exposures are extensive. Jobsite operations include the potential for bodily injury to the public or employees of other contractors, or damage to their property or completed work.

Tools, power cords, building materials and scrap all pose trip hazards even when not in use. The use of saws and other power or hand tools is inherently hazardous due to sharp edges and moving parts. In enclosed buildings, the buildup of dust and scraps can result in catastrophic fire and explosion. Disposal of waste materials (dust, scrap, varnishes or paints) could create environmental hazards. There may be significant subcontractor and contractual liability exposures.

Completed operations liability exposures are high if the carpenter provides the structural framework of a building due to the potential for collapse. Quality control and full compliance with all construction, material, and design specifications are necessary. Inadequate monitoring of work orders and change orders may be a concern. Poor record-keeping may necessitate payment of otherwise questionable claims. Inspection and written acceptance of the work by the owner or general contractor is critical.

Workers compensation exposures vary based on the size and nature of the job. Work with hand tools and sharp objects such as saws, chisels and nails can result in cuts, piercings, and accidental amputation. Back injuries, hernias, strains, and sprains can result from lifting. Minor injuries may be frequent even when the severity exposure is controlled. When work is done on ladders and scaffolds, there is a potential for severe injury or death from falling, being struck by falling objects, or adverse weather conditions.

The absence of good maintenance of scaffolds, proper use of basic safety equipment, such as properly installed guards, steel-toed shoes, and eye protection, and strict enforcement of safety practices may indicate a morale hazard. Employees must be carefully selected, trained and supervised. Occupational disease exposures can result from exposure to noise, dust, and chemicals, such as from pressure-treated lumber.

Inland marine exposures include accounts receivable if the carpenter offers credit to customers, contractors' equipment for owned or rented tools and equipment, goods in transit, installation floater, and valuable papers and records for customers' and suppliers' information. Equipment at a jobsite can be damaged by drops from heights, weather damage, or being struck by vehicles. Equipment and supplies left at jobsites are subject to theft and vandalism.

Lumber or woodwork can be damaged during transport from shifting, improper loading or inadequate tie down. Oversized loads can be damaged by collision with stationary structures or other vehicles.

Crime exposures are from employee dishonesty. Background checks, including criminal history, should be performed on all employees providing services to customers or handling money. All ordering, billing and disbursement should be handled as separate duties with reconciliations occurring regularly.

Business auto exposures are limited unless lumber and pre-made items are transported by the carpenter. MVRs must be run on a regular basis. Random drug and alcohol testing should be conducted. Vehicles must be well maintained with records kept in a central location. Hazards of transport include failure to secure the load properly and equipment failure, especially tie-downs and hitches. If oversized items are transported, vehicles must be clearly marked.

Carpentry Insurance

Business insurance can save you from severe losses that could cause severe financial strain and potentially shut down your business. To find out what type of insurance coverage you should carry and how much it will cost you, speak to a reputable agent who specializes in insurance for carpenters.

New Mexico Economic Data, Regulations And Limits On Commercial Insurance

Made In New Mexico

Owning and operating a business can prove to be financially and personally rewarding. However, if you want to have as much success as possible, it's essential that you choose the best possible location for your company.

After all, it doesn't matter how exceptional your products are and how top-notch your products and/or services are, if the location isn't favorable for your specific business, chances are you won't reap the success you are hoping for.

When considering where to start a business, it's important to consider the economic trends of a state. These trends provide insight into the health of a state's economy, which can help prospective business owners determine whether or not a specific location is favorable for their particular operation. Additionally, it's important to understand what type of commercial insurance policies you'll need to invest in to properly protect your business.

If you're thinking about starting a business in the state of New Mexico, read on to find an overview of the economy and the commercial insurance requirements of the Land of Enchantment.

Economic Trends For Business Owners In New Mexico

A state's unemployment rate is an important factor to consider when assessing the economy, as it illustrates whether or not the area offers a favorable environment for businesses.

According to the Bureau of Labor Statistics, as of December, 2019, the unemployment rate in New Mexico was 4.7%, which is 1.2% higher than the national average. However, the rate has fallen; in July of 2019, for example, the unemployment rate was 4.9% and in November of the same year, it was 4.8%.

This rapid decrease shows promise for the Land of Enchantment. Furthermore, economists predict that the jobless rate of the state will continue to decrease moving forward.

New Mexico is a large state with varied topography and demographics. As such, the best locations prospective business owners can expect to see the most success include urban areas and the surrounding regions. Examples include:

  • Alamogordo
  • Albuquerque
  • Carlsbad
  • Farmington
  • Las Cruces
  • Rio Rancho
  • Roswell
  • Santa Fe
  • Toas

The industries that are seeing the most economic growth in the Land of Enchantment include:

  • Administrative and federal government
  • Advanced manufacturing
  • Aerospace and defense
  • Digital media and film production
  • Distribution, logistics, and transportation
  • Energy
  • Hospitality and tourism
Commercial Insurance Requirements In New Mexico

The New Mexico Office of Superintendent of Insurance regulates insurance in NM. New Mexico mandates very few forms of insurance coverage by law. They enforce worker's compensation.

New Mexico requires you to have worker's compensation insurance if you hire 3 or employees on a regular basis in the construction industry, businesses with even one employee must provide workers compensation insurance. This includes part-time employees, family members, minors, and immigrant employees. It is not required for independent contractors or domestic employees, though you should check to make sure any contractors you have are true contractors, and not employees.

New Mexico also requires all business-owned vehicles to be covered by commercial auto insurance. Other types of business insurance that business owners should carry depend on the specific industry.

Additional Resources For Contractors & Home Improvement Insurance

Learn about small business contractor's insurance, including what it covers, how much it costs - and how commercial insurance can help protect your contracting business from lawsuits.


Contractors And Home Improvement Insurance

A contractor that wants to begin or stay in business, liability coverage must be obtained for the premises or operations, off-site locations and products/completed operations exposures. These coverages may be included as a part of a businessowners policy (BOP) or purchased in a commercial general liability (CGL) policy. Owners and contractors protective liability and railroad protective liability coverages may also be required in certain cases in order for a contractor to obtain a particular job.

Physical damage coverage for tools, supplies and equipment, both on and off the contractor's premises, is a concern. Liability exposures at the premises of the contractor, and at the premises of the contractor's customer, must be properly addressed along with completed operations. Business insurance is very important as is workers compensation insurance protection for employees.

Contractors may work under a general contractor as a subcontractor in larger construction projects - like a new commercial site or residential subdivision. They can work on smaller projects directly with a home owner, usually specializing in renovations or remodels.

In business insurance speak, often called 'artisan contractors' or 'casual contractors', they are involved in many aspects of construction and contracting work – and include various trades and skills. Carpenters, painters, plumbers, electricians, roofers, tree trimmers, landscaping are just a few examples. They may do roofing, fencing, drywall, tile work and many other trades that involve skilled work with tools at the customer's premises.

An artisan contractor performs a single trade or job, and each has its own specialized liability needs with its own exposures to risk and accidents. Contractors liability insurance can offer coverage for bodily injury, property damage, advertising injury and medical payments.

Most artisan contractors should have commercial general liability at the very least, but many need broader coverages - like an umbrella to increase their limits of liability, inland marine policy to protect their tools, workers compensation if they have employees, and even commercial auto if they use vehicles for business purposes.

Minimum recommended small business insurance coverage: Business Personal Property, Employee Dishonesty, Contractors' Equipment and Tools, General Liability, Employee Benefits Liability, Umbrella Liability, Automobile Liability and Physical Damage, Hired and Non-owned Auto & Workers Compensation.

Other commercial insurance policies to consider: Building, Business Income with Extra Expense, Earthquake, Flood, Leasehold Interest, Real Property Legal Liability, Accounts Receivable, Builders Risk, Computers, Goods in Transit, Installation Floater, Valuable Papers and Records, Cyber Liability, Employment-related Practicesand Stop Gap Liability.


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Also learn about New Mexico small business insurance requirements for general liability, business property, commercial auto & workers compensation including NM business insurance costs. Call us (855) 767-7828.

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