New Mexico Charity Insurance Policy Information
New Mexico Charity Insurance. Charities are subject to the same level of scrutiny and bureaucracy as commercial businesses. Just like company directors, trustees and charity managers are legally responsible for their charity's activities; from finance to health and safety, volunteers' welfare, to the promises a charity makes.
For this reason, they need insurance to provide cover against various risks. An accident involving a visitor at a fundraising event, or an allegation of wrongdoing against a volunteer injuring themselves while working for the charity could have disastrous consequences. Few charities have the financial strength to pay the costs, damages and any awards made against them in the event of a claim. New Mexico charity insurance provides protection against these scenarios, giving you the peace of mind that if something unexpected happens, your organization is covered.
New Mexico charity insurance protects your non-profit or social service organization from lawsuits with rates as low as $27/mo. Get a fast quote and your certificate of insurance now.
What Kinds Of Charity Insurance Does My Organization Need?
There may be certain types of insurance that your charity is legally required to take out, and there may also be optional New Mexico charity insurance policies that you will choose to purchase, to ensure you're comprehensively covered, which is why it's important to do research.
The policies that you include in your NM charity's insurance package may be influenced by a number of factors, including the size and nature of your organization, and the work it carries out. That said, there are likely to be a handful of risks that your charity could be exposed to, no matter what its circumstances. So, you need these basic New Mexico charity insurance coverages:
General liability insurance (CGL) covers third party property damage or personal injury claims against you or your charity. With New Mexico charity insurance you're covered for:
- Third-party bodily injury or property damage claims against your charity.
- Public liability at your premises and at fundraising events such as: fetes, craft fairs, walks, dinners, fun days, etc.
- Replacing third-party keys, locks and pass cards lost while in your care.
For example, if a member of the public trips over the cable that's powering your projector and breaks her ankle, your general liability insurance pays any compensation that's due, and your legal defense costs. And if one of your volunteers spills coffee over a visitor's laptop, it's still your general liability policy that pays for its repair or replacement.
This type of New Mexico charity insurance protects your buildings, contents and stock against damage from causes including fire, explosion, storm, falling trees, vandalism, escape of water, vehicle impact and theft. Flood and earthquake are not part of a standard business property policy.
Directors & Trustees Liability
Trustees are legally responsible for a charity's activities, in the same way that directors are responsible for a business' activities. This means having oversight of things like fundraising and donations, as well as making sure your people are looked after and that your charity complies with relevant laws.
If someone alleges your charity's done something wrong, as a trustee, it's your responsibility to defend the claim. New Mexico charity insurance for trustees' insurance gives you expert legal representation and pays any fines you're liable for. You're covered for:
- Your personal liability as a trustee.
- Actual or alleged 'wrongful acts', including breach of trust, defamation and negligence.
- Legal defense costs and damages.
Professional liability, also known as errors and omissions, protects your charity if it provides services or advice. Perhaps your charity helps people start businesses, designs websites to publicize other people's events, or lists other products and services? Giving advice or services exposes your charity to the risk of negligence claims and could mean it's forced to defend its reputation, whether or not the accusations are just.
With this type of New Mexico charity insurance you're covered for:
- Protection against mistakes your charity makes.
- Legal defense costs if your charity infringes someone else's copyright.
- Coverage for damages and fines.
This New Mexico charity insurance policy covers any compensation that your organization has to pay if you accidentally share someone's details with a third party, for example. Lists of wealthy donors are common hacking targets. Plus, it pays for your charity's defense costs, if that person sues you for doing so. You're covered for:
- Financial losses caused by your charity's mistakes and things you've failed to do.
- Compensation and defense costs if someone brings a data protection claim against your charity.
Many charities have employees and also will use the services of volunteers. Many states class volunteers as employees, even if they're unpaid, temporary, part-time, or simply helping out. And because they're classed as employees, their health, safety and welfare is your organization's legal responsibility.
Without NM workers comp, your charity or social services organization would have to pay out of pocket for lawsuits or medical bills if an employee or volunteer experiences a work-related injury or ailment. Plus it is required in most states anyway.
Equipment And Business Interruption
Equipment New Mexico charity insurance covers the things your charity takes out and about, from tables and chairs to computers and display screens:
- Loss, theft or accidental damage to your charity's property.
- Damage caused by fire, storm or operator error.
It's an 'all risks' policy which, as the name suggests, means your charity's property is covered in all reasonable circumstances including theft, fire and accidents. If there is a disaster and your charity's forced to move out of its premises, business interruption cover pays for your charity to set up somewhere else.
NM Charity Insurance
Charity and social services insurance is designed specifically for the sector to give you peace of mind that all your vital assets and people are covered and safe. It's important to find a competitively priced policy that offers flexibility and sufficient coverage to support the groups, communities and individuals you are involved with.
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 Non-Profit Insurance
Find useful articles on business insurance for non-profit 501(c)(3) organizations, charities and associations.
- Animal Shelter & Pet Rescue
- Credit Union
- Fraternal Organization
- Labor Union
- Parent Teacher Organization
- Public Administration
- Social Work Services
For 501(c) Non-Profits - Directors And Officers Liability Insurance has become an increasingly important policy to have. D&O coverage protects insured directors or officers against claims involving allegations of wrongful acts occurring while performing their duties as such. The insurance is divided into two separate coverages:
Side A coverage reimburses the individual directors and officers for payments made for loss each has incurred because of wrongful acts.
Side B coverage reimburses the corporation for the payments it has made on behalf of the directors or officers themselves.
General Liability is a foundational policy for almost any business. Most companies do not have any control over the final cost of injuries to a person injured because of their operations, products, or services. The person injured may be a young child, a blue-collar worker, a surgeon, or a homeless person.
The cost of the injuries may be comparatively minor or run into the millions of dollars, depending on the person and the extent of his or her injuries. Do you have sufficient assets to pay such a loss?
Commercial general liability insurance is designed to help you protect your assets with three main coverages:
- Coverage A: Bodily Injury and Property Damage Liability
- Coverage B: Personal and Advertising Injury Liability
- Coverage C: Medical Payments
Minimum recommended small business insurance coverage: Building, Business Personal Property, Business Income and Extra Expense, Employee Dishonesty, Money and Securities, Computers, Valuable Papers and Records, General Liability, Directors and Officers Liability, Employee Benefits, Professional, Umbrella, Hired and Non-owned Auto & Workers Compensation.
Other commercial insurance policies to consider: Earthquake, Equipment Breakdown, Flood, Computer Fraud, Forgery, Fine Arts, Musical Instruments, Commercial Articles Floater, Computers, Cyber Liability, Employment-related Practices, Business Auto Liability and Physical Damage and 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.