Sporting Goods Store Insurance New Mexico Policy Information
Sporting Goods Store Insurance New Mexico Sporting goods store owners can benefit from a specific type of insurance that's designed specifically for their needs.
Athletic goods stores may limit their inventory to sports clothing and shoes, may specialize in a specific sport, such as skiing or hunting, or may offer clothing, equipment and accessories for a wide range of sporting, hunting and fishing activities. Some will offer equipment rentals, repair services, trade-ins and used equipment sales.
Classes may be offered for training in specific sports, such as golf or archery, along with ranges for archery or shooting. The store may arrange excursions such as fishing, scuba, or camping trips. Athletic competitions, exhibitions and special events may be offered or sponsored, both on-site and off-premises.
Commercial general liability insurance policies may not cover all of the needs of a sporting good store, so it's best to investigate available sporting goods store insurance New Mexico options.
Sporting goods store insurance New Mexico protects your shop from lawsuits with rates as low as $37/mo. Get a fast quote and your certificate of insurance now.
Types Of Sporting Goods Store Insurance
Due to the nature of sporting goods, possible risks include employee and customer injuries, damage to property during demonstrations, theft of popular sports clothing or goods, and fire robbing you of your stock and your livelihood - particularly when you're not part of a big chain of stores who can easily rebuild and restock the store and reallocate staff.
Following are some of the most common sporting goods store insurance New Mexico policies available:
Commercial General Liability - This type of sporting goods store insurance New Mexico protects the store from liability from third party bodily injury and property damage claims. It will cover things like slip and fall accidents, or customers getting hurt while in the store. It will also protect you from lawsuits that might arise from issues in the store. This type of insurance is flexible and can be adjusted along with the growth of your business. If you add new stores, bring in new services or offer new products, your general liability can expand to meet the new demand
General liability gives you protection against injuries that people sustain in your store and any damage to their personal property. This kind of insurance would cover any medical bills that you had to pay as a result of these problems arising in the NM sporting goods store. This sporting goods store insurance New Mexico can also cover things like product liability, where a product accidentally injures someone that has bought it. The General Liability cover is suitable for any lawsuits that might result from the incident.
Business Owners Policy - This type of insurance known as BOP automatically includes the coverage described in the general liability section above. It also helps to protect your other parts of your business too. A BOP is flexible and can be created to suit the needs of your particular store. BOP could include things like:
- The physical building
- The contents of that building
- Any essential electronic data
- Newly built premises
- The fallout of employees' dishonest practices
Consider for instance, how long its taken you to build your email or physical marketing lists. If that data was corrupted or lost, you'd really be in trouble. Protecting electronic data is just one of the types of BOP cover that you could get for your NM sports store.
Loss of Income Coverage - This type of sporting goods store insurance New Mexico coverage protects your business income should your operations be suspended due to accidental damage or loss to your businesses premises. It can pay for up to a year to you move back on or relocate.
Physical Indoor or Outdoor Signage - This type of commercial insurance covers the theft or damage to signage that is attached to the exterior or found internally.
Flood Insurance - Flood insurance is not included in other business insurance policies. If your store is in a flood zone, you will need commercial flood insurance to protect your inventory and building if you own it.
NM Commercial Auto - Sporting goods businesses may have very different needs when it comes to vehicles. If you deliver, and your vehicle was damaged, it could easily cause harm to your livelihood. Equally, business insurance for vehicles could pay for any damage done to people or property in a car accident involving your vehicle.
Workers Compensation - Many states require that you provide worker comp for your employees. If any of your employees becomes injured while working for you, or if they become ill due to something that happened at work, you become responsible for them. NM workers comp pays for costly medical care bills.
Commercial Umbrella - This type of sporting goods store insurance New Mexico is designed to go above and beyond your existing liability insurance limits. It is an excess liability policy that gives a higher level of protection should a lawsuit exhausts your underlying policy limits.
Professional Liability Insurance - There are times when negligence or bad advice could leave your store open to a lawsuit. Professional liability provides coverage when a business is found liable for negligence that causes damages or harm.
NM Athletic Good Store's Risks & Exposures
Premises liability exposure comes from slips and falls due to public access to the premises. All stock should be on sturdy shelves that are easily accessible to customers. Floor coverings should be in good condition, no frayed or worn spots on carpet and no cracks or holes in flooring. Sufficient exits must be provided and be well marked, with backup lighting systems in case of power failure.
If there are archery or shooting ranges on premises, safety equipment should be provided to participants. If firearms or ammunition are sold, the store must adhere to all state or local requirements and scrupulously keep records of transactions. If equipment is rented, it must be reconditioned before it is rented again.
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 premises are open after dark, there should be adequate lighting and appropriate security for the area.
If vendors provide services, the store should require certificates of insurance verifying appropriate limits of liability.
Personal injury exposures are from dressing rooms, which must be well maintained with privacy carefully guarded, and from apprehending and detaining shoplifters. Shoplifting procedures must be fully understood and utilized by all employees.
Products liability exposure is limited unless there is reconditioning, repair or direct importing of foreign-made equipment. In any of these cases the retailer can assume the responsibility of a manufacturer. Foreign-made items should come from a domestic-based wholesaler.
Workers compensation exposure is from lifting which can cause back injury, hernias, 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. Equipment used in repair operations should be appropriately maintained to prevent injury.
In any retail business, hold-ups can occur. Employees should be trained to respond in a prescribed manner. If classes or demonstrations are held or if employees participate in activities in other ways, proper training and use of safety equipment is critical to prevent injury.
Property exposures can be high due to the value and combustibility of stock along with numerous ignition sources. All wiring should be well maintained and meet current codes for the occupancy. Aerosols and plastics add to the fire potential. Any down-filled or fabric items are highly susceptible to damage from water, smoke and fire. Firearms and ammunition should be stored away from flammables and in an area inaccessible to customers. If LPG tanks are sold or exchanged, they should be stored in a locked, secure area outside the building.
Theft is a major concern because of the street market for athletic shoes and other high-value sporting equipment. Appropriate security measures should be present 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.
Crime exposures are from employee dishonesty and loss 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 reconciliations. 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, bailees customers if the store accepts customers' items for repair, computers to transact sales and monitor inventory, exhibitions and goods in transit if the store takes goods to trade shows, and valuable papers and records for vendors' and customers' records. Backup copies of all records, including computer records, should be made and stored off premises.
Commercial auto exposure is generally limited to hired and nonwnership liability for employees running errands. Anyone who uses a vehicle must have a valid license and acceptable MVR. Vehicles should have regular maintenance with records kept.
NM Sporting Goods Store Insurance
It is important for sporting good shop owners to understand what is covered, what isn't, and what additional or optional sporting goods store insurance New Mexico policy protections should be considered when choosing a policy.
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 Retail Insurance
Read valuable small business retail insurance policy information. In a retail business, you need to have the right type of commercial insurance coverage so that your store, employees, and inventory are protected.
- Adult Novelty
- Appliance & Electronics Store
- Art Gallery
- Bicycle Shop
- Book Store
- Bridal Shop
- Candy Confectionery Store
- Carpet Store
- Clothing Store
- Collectibles Memorabilia Store
- Convenience Store
- Cosmetics Store
- Dry Cleaning
- Equipment Rental
- Funeral Home
- Furniture Store
- Gift Store
- Hardware Store
- Home Improvement Store
- Hotel Motel
- Ice Cream Shop
- Jewelry Store
- Lingerie Store
- Luggage Store
- Music Store
- Office Supply Store
- Paint & Wallpaper Store
- Pet Store
- Pharmacy Liability
- Plumbing Supplies Fixtures Store
- Scrap Metal Dealers
- Sewing Store
- Shoe Store
- Sporting Goods Store
- Stationary Store
- Thrift Store
- Ticket Agency
- Tobacco Store
- Toy Store
- Travel Agency
- Wig Store
Retail stores are susceptible to premises liability claims because of customer traffic, but large department and specialty stores are more susceptible than most.
All retail stores have significant property exposures. The on-hand stock represents a considerable investment, but the amount on hand fluctuates seasonally. For this reason, physical damage insurance on this property must be arranged carefully. When the insured occupies a non-owned building, insurance coverage must be arranged for the insured's interest in extensive improvements and betterments made to the premises.
Crime insurance, in the form of employee theft and money and securities coverage, is also very important.
The businessowners policy was designed with retail exposures and operations in mind. For this reason alone, it should always be the first type of package coverage to consider. However, for those risks not eligible for the business owners policy program, the commercial package policy (CPP) is a practical and convenient way to combine a number of coverages into one policy.
Retail businesses generate income through interaction with customers. This interaction is also how a customer can sustain an injury and then sue the retailer for damages. Hazards, exposures and operations both on premises and off are important and must be covered, but liability the retailer may incur because of the merchandise sold must also be considered and insurance protection arranged.
Inventory or stock is the major property exposure for most retail operations. Because stock values tend to fluctuate or have significant peaks at certain times of the year, value reporting or peak season valuation options should be considered. Business income coverage, including business income from dependent properties coverage, may mean the difference between a retail operation staying in business or being forced into bankruptcy following a loss.
When the insured occupies a non-owned building, insurance coverage must be arranged for the insured’s interest in extensive improvements and betterments made to the premises.
Most retail businesses offer endless opportunities for a variety of criminal activities. For this reason, the coverages needed must be carefully evaluated. Holdup and robbery losses may be the most obvious concerns but employee theft, fraud and counterfeit money losses are also serious issues that cannot be dismissed.
Retail businesses are gaining greater exposure to international issues because of the growth in sales via the internet. As these sales increase, the added exposures faced by these retailers must be evaluated. While their operating horizons are expanding so are their potential loss exposures.
Minimum recommended small business insurance coverage: Business Personal Property, Business Income and Extra Expense, Equipment Breakdown, Employee Dishonesty, Money and Securities, Accounts Receivable, Computers, Valuable Papers and Records, General Liability, Employee Benefits, Umbrella, Hired and Non-owned Auto & Workers Compensation.
Other commercial insurance policies to consider: Building, Earthquake, Flood, Leasehold Interest, Real Property Legal Liability, Computer Fraud, Forgery, Bailees Customers, Goods in Transit, Jewelers Block, Cyber Liability, Employment-related Practices, Business Auto Liability and Physical Damage and Stop Gap Liability.
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Also find New Mexico insurance agents & brokers and learn about New Mexico small business insurance requirements for general liability, business property, commercial auto & workers compensation including NM business insurance costs. Call us (505) 349-0657.