Employers Liability Insurance New Mexico Policy Information
Employers Liability Insurance New Mexico. Most business owners know the importance of workers compensation insurance to protect themselves from claims for injury by those they employ. However, businesses have realized that workers comp doesn't cover everything. The exceptions in this widely mandated employee benefit have prompted businesses to develop a companion product called employers liability insurance.
Employers liability insurance New Mexico covers you against compensation claims arising from employee illness or injury, sustained as they work for you.
Employers Liability insurance New Mexico protects your business from lawsuits with rates as low as $47/mo. Get a fast quote and your certificate of insurance now.
Building Your Employers Liability Insurance Policy
Employers Liability Insurance is compulsory for any business that has one or more direct employees. This includes full-time and part-time employees, self-employed contractors you hire, temporary staff, apprentices, volunteers and people taking part in work experience or on the job training.
Most policies extend the definition of a direct employee to include: labor-only sub-contractors or persons supplied by them, self-employed persons, persons hired or borrowed by the insured under agreement or persons engaged in training, education or work experience. This means that claims against your business under these categories will be indemnified by your employers liability insurance New Mexico, providing you are covered.
Some NM employers are exempted from this type of insurance. These include; a limited company where only 1 person is employed and that person also owns more than 50% of the share capital; a company which is not limited and has only 1 employee (sole trader) who is the principal of the business; a company which is not limited and of more than 1 employee where employees are close family members; and partnerships where the directors are equal partners in the business and do not employ others.
How ELI Works
Employers liability insurance New Mexico typically involves one of these types of claims:
- Third-Party Over Actions. In this case, another party which was held accountable for your employee's injuries files this law suit against your company. So say, for instance, one of your workers was injured while equipment you hadn't properly maintained. The worker sues the producer of the equipment, then the manufacturer turns this around to sue you for negligence.
- Loss of Consortium. The spouse of an injured worker files this law suit.
- Dual-Capacity Suits. A worker can file this law suit against their employers if an item the employer manufactures caused their injury.
- Consequential Bodily Injury. This applies when a family member of your employee suffers bodily injury caused by the employee's injuries.
Employer's Liability Insurance Claims
ELI claims wide-ranging. They can and do arise from ex-employees as well as current ones. They can be brought due to a wide range of physical and psychological injuries and/or industrial diseases sustained during the course of employment. Such claims should never be taken lightly or disregarded. Even a minor injury can cost thousands to deal with while more serious injuries or illnesses, can easily lead to claims in the tens or hundreds of thousands of dollars. Some examples are:
- Mental injury or stress not accompanied by any physical injury.
- Nervous shock or fright not accompanied by any physical injury (this may result in serious illness, such as heart attack or stroke).
- Disease brought on over time (e.g. exposure to the elements or extremes of temperature).
Why Do I Need NM Employers Liability Insurance?
Accidents happen, accusations are made, lawyers get involved and people want compensation. Rightly or wrongly these things happen every day and, sooner or later, you will be on the receiving end. A claim won't go away if you ignore it. And there are no shortcuts. So you need employers' liability insurance because you have a business to run; because you have limited funds; because you're not legally trained; and because your reputation matters.
Employers liability insurance New Mexico is not generally bought by itself. This is because when you have direct employees you almost certainly require NM workers comp. You can buy ELI directly from an insurer or from a specialist broker. The exact cost of the premium is based on a number of factors including the line of the business, the number of people you employ and your previous insurance claims history.
New Mexico Economic Data, Regulations And Limits On Commercial Insurance
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:
- Las Cruces
- Rio Rancho
- Santa Fe
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
- 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 Small Business Insurance
Protect your company and employees with the right commercial insurance policies. Read informative articles on small business insurance coverages - and how they can help shield your company from legal liabilities.
- Small Business
- Business General Liability
- Business Liability
- Business Owners Policy (BOP)
- Certificate of Insurance
- Commercial Auto
- Commercial Umbrella
- Comprehensive General Liability
- Directors and Officers Liability
- Cyber Liability
- Employers Liability
- Employment Practices Liability
- General Liability
- Home Based Business
- Independent Contractor
- Liability Insurance Certificate
- Liability Insurance
- Professional Liability
- Workers Compensation Insurance
Your small business faces many potential disasters including: fire, floods, theft, equipment breakdown, lawsuits from clients or customers and current & former employees. Any many other risks you haven't even thought about.
A small business commercial insurance program should provide protection for both larger and smaller disasters. The obvious things like fire, flood and theft most business owners think about... but what if a hacker infects your computers with a virus - and files containing private customer information like credit card and Social Security numbers are stolen?
Who is going to pay to fix your customers credit rating etc...? Will your insurance pay for the cost? You need to know that.
Your commercial insurance program should cover events that can close down your company, or cause it to lose revenue. Anything less than that is not enough coverage. Commmercial insurance doesn't cover everything, and all policies have exclusions and limits.
You need a written plan that allows you to get your operations back up and running as quick as possible.
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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.