New Mexico Real Estate Appraiser Insurance Policy Information
New Mexico Real Estate Appraiser Insurance. As a NM real estate appraiser, your job is to help buyers and sellers to figure out the value of property. Although real estate appraising might seem like a straight forward job, it comes with many risks. The number of risks involved in this type of business good idea to have insurance.
Appraisers provide independent valuation services for both real and personal property. These valuations may be used for tax or other financial statements, loss adjustment, insurable values, home or commercial building purchases, or as a result of legal action. Valuations may be based on replacement cost, market value, actual cash value (depreciated), or functional value.
Appraisers can specialize in specific types or categories of properties, such as real estate or collectibles, or they may offer a wide range of valuation services. Some offer their services to the general public, while others are trade- or industry-specific, such as insurance claims adjusting.
If you're in the business of real estate appraising, then getting the right insurance can protect your business from financial ruin. Here we will take a look at the different types of New Mexico real estate appraiser insurance you can get to protect your business.
New Mexico real estate appraiser insurance protects your company from lawsuits with rates as low as $37/mo. Get a fast quote and your certificate of insurance now.
Risks That Real Estate Appraisers Face
As stated before there are many risks you face as a NM real estate appraiser. Some of the risks you'll face include:
- Injury to another person
- Physical damage to someone else's property
- Injury to yourself
- Injury to an employee
- Injury to a contractor
- Causing financial loss for a buyer or seller, because of improper property value assessment.
- Getting in an accident while conducting business
As you can see many things can go wrong when operating your business. Above you can see the number of risks involved with this business, now let's take a look at what you can do to protect your firm.
Why Real Estate Appraiser Insurance Is A Must
To adequately protect your business as a real estate appraiser you'll need a variety of New Mexico real estate appraiser insurance policies in your insurance portfolio. Each insurance policy you get for your appraising business will cover a different type of risk. Here are some of the different insurance plans you could get for your business:
Commercial General Liability Insurance - If your company gets a lawsuit and you're required to go to court then this the insurance you need. Having this insurance helps with the costs associated with legal defense and other judgments as a result of the trial. If an employee causes damage to a third party or their property, then this insurance will help to cover your business.
Professional Liability Insurance - Also known as errors and omissions insurance, professional liability is the type of insurance that provides you with protection against lawsuits due to negligence. If you fail to perform your professional duties successfully you can be held liable. Appraisers get many frivolous lawsuits for issues that originate after the home is purchased. For this reason having this New Mexico real estate appraiser insurance is best. Being a real estate appraiser makes this the most important insurance you can get for your business.
NM Commercial Auto Insurance - Having this insurance protects the vehicles you use for your business. Many personal car insurance policies do not cover business use. This insurance covers any damaged caused by your business vehicles when driving to inspections and other meetings.
Non-owned Auto Liability Insurance - If an employee uses their vehicle to do work for the business, they will need protection while on the road. Non-owned auto liability insurance is how you will provide them with this protection. Having this insurance is important to keep your employees protected when they use their vehicles for business errands. So if they hurt someone and your business is sued you will have protection.
NM Workers' Compensation - One of the most important insurance policies to have for your business. Workers comp is required in many states for any non partner or owner employees. If an employee is injured while on the job and required to see a doctor, then this insurance helps with the costs associated with that injury. This insurance also offers benefits to the family if the injury results in a fatality.
New Mexico Real Estate Appraiser's Risks & Exposures
Premises liability exposure comes from slips and falls due to public access to the premises. Floor coverings must be in good condition, no frayed or worn spots on carpet, and no cracks or holes in flooring. Steps and uneven floor surfaces should be prominently marked. Sufficient exits must be provided and be well marked, with backup lighting systems in case of power failure. All goods should be kept on easily reached shelves so that customers do not pull down items on themselves.
Parking lots and sidewalks need to be in good repair with snow and ice removed, and generally level and free of exposure to slips and falls. If the business is open after dark, there should be adequate lighting and appropriate security for the area.
Personal injury exposures are from apprehending and detaining shoplifters. Shoplifting procedures must be fully understood and utilized by all employees.
Products liability exposure is normally low. Direct import of foreign products can be a concern, particularly as it relates to adult toys. Foreign-made items should come from a domestic-based wholesaler. Any direct importer should be considered as a product manufacturer.
Workers compensation exposures are from lifting that can cause back injury, hernia, sprains, and strains, and from slips and falls. Employees should be provided with safety equipment, trained on proper handling techniques, and have conveying devices available to assist with heavy lifting. Shelves should be easily accessible for storage. Stepladders should be available. Housekeeping in storage areas, especially during peak times, is vital in preventing trip and falls. In any retail business, hold-ups may occur. Employees should be trained to respond in a prescribed manner.
Property exposures are low since ignition sources are limited to electrical wiring, heating and cooling systems. The material, fabrics and plastic goods on hand can create a tremendous fire load and be extremely susceptible to damage by fire, smoke and any type of moisture. If high-value items are carried, theft may be a concern. Appropriate security measures must be taken, including physical barriers to prevent entrance to the premises after hours and an alarm system that reports directly to a central station or the police department. Breakage is a concern as items may be made of glass or pottery.
Business interruption is a concern since sales may peak at particular times during the year.
Crime exposures are from employee dishonesty and theft of money and securities either from holdup or safe burglary. Background checks should be conducted on all employees handling money. There must be separation of duties between persons handling deposits and disbursements and handling bank reconciliation. Money should be regularly collected from cash drawers and moved away from the collection area, preferably to a safe on premises. Bank drops should be made throughout the day to prevent a buildup of cash on the premises.
Inland marine exposures are from accounts receivable if the store offers credit, computers to transact sales and monitor inventory, and valuable papers and records due to customers' and vendors' records. Backup copies of all records, including computer records, should be made and stored off premises.
Business auto exposure is generally limited to hired and non-owned liability for employees running errands.
NM Real Estate Appraiser Insurance
There's no effective way to predict what will happen to your business in the future. This is why it's best to stay prepared and one of the best ways to be ready is to have insurance. To get started on finding the best insurance coverages for your real estate appraiser business you can speak with an experienced insurance agent. Doing this will put you in the best position to find the insurance that's right for you.
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 Real Estate Insurance
Learn about small business real estate insurance coverages including liability and commercial property policies for realtors, mortgage companies and more.
For real estate professional liability policies, the insurance company agrees to pay amounts the insured is legally obligated to pay as damages because of a wrongful act. However, this insurance must cover the wrongful act.
The insurance company not only has the right to defend any suit brought against the insured, it also has a duty to do so. That duty, which can be very expensive, does not apply to suits brought for wrongful acts that this insurance does not cover.
What type of coverage is available for real estate agents who provide insurance advice? Any claim related to the sale or purchase of insurance is not covered. In addition, there is no coverage for any recommendations or advice regarding insurance or any failure to procure or maintain appropriate insurance.
Who is considered an insured under the Real Estate Agents and Brokers Professional Liability Policy? The named insured is an insured. The named insured is the entity or individual listed on the declarations. There can be multiple named insureds.
Any entity listed in the application as a predecessor organization is an insured. The named insured must be the entity's majority successor of interest with respect to the predecessor organization's financial assets and liabilities.
Are Real Estate Brokers Professional Liability policies written on an "occurrence" or a "claims-made" basis? Insurance is written on a claims-made basis, requiring that a claim must be reported to the insurer during the policy period or during the extended reporting period.
Minimum recommended small business insurance coverage: Business Personal Property, Business Income with Extra Expense, Employee Dishonesty, Money and Securities, Accounts Receivable, Computers, Valuable Papers and Records, General Liability, Employee Benefits Liability, Professional Liability, Umbrella Liability, Hired and Non-owned Auto Liability & Workers Compensation.
Other commercial insurance policies to consider: Building, Earthquake, Equipment Breakdown, Flood, Computer Fraud, Forgery, Cyber Liability, Employment-related Practices Liability, Business Auto Liability and Physical Damage abd Stop Gap Liability.
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