Professional Liability Insurance
in New Mexico
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According to the U.S. Small Business Administration’s Office of Advocacy (SBA), there are 161,921 small-scale companies, which account for 99% of the total number of New Mexico companies. These small businesses contributed nearly 64,300 new jobs to the state’s economy. They are therefore an important driver for New Mexico’s economic growth.
New Mexico’ top five industries are:
- Health Care and Social Assistance
- Accommodation and Food Services
- Professional, Scientific and Technical Services
As The Land of Enchantment, expands and more small businesses are able to take advantage of the booming economy, a lot of them may need to ensure that their business is secure.
What is Professional Liability insurance?
Also known as Errors and Omissions (E&O) insurance, this type of policy protects your business against claims of negligence, misrepresentations, or mistakes. Professional Liability claims are typically made by clients who allege some form of financial damage as a result of your services, products or employees.
What does Professional Liability insurance cover in New Mexico?
Even when a claim is unfounded, legal fees and court costs can still amount to thousands of Dollars. For small-sized business owners the financial burden can affect their business operations. In worst case scenarios, liability claims may be enough to cause some small businesses to close up shop for good.
Based on the kind of coverage you choose, and the limit agreed in your insurance contract, Professional Liability insurance may provide protection from:
- Legal Costs – Legal representation doesn’t come inexpensive, and most lawyers cost an hourly fee.
- Court expenses includes filing documentation with the court as well as underwriting charges.
- Settlements – If your client is willing not to appear in court, it may save you from a lengthy and expensive legal process. But, you’ll still have to pay a fee depending on the recommendations of your attorney.
- Judgments – You may need to pay the amount of the court if the case goes to trial.
Importantly, Professional Liability insurance still provides cover to the insured even if they aren’t the cause. Baseless claims may be just as costly to settle as ones which have merit. Protecting your business and reputation professionally by purchasing a Professional Liability Policy will provide a safeguard so you’re not left with the stress of paying for these costs.
What isn’t covered?
Professional Liability insurance protects a variety of businesses from different risks they could face. However, it does not cover all types of risks. Consider looking for other types of insurance for certain specific events, like:
- The commercial property you own or your property
- Property of clients damaged or property belonging to third party
- Employee work-related injury or illness
- Third party injuries that occur on your premises
- Business interruptions
BizInsure provides additional types of coverage that will aid your business in protecting itself from these and other risk factors. New Mexico small-scale business owners might want to consider General Liability, Workers’ Compensation or a Business Owner’s policy to safeguard themselves from a wide variety of potential risks.
Who may need Professional Liability insurance?
Insurance for Professional Liability protects individuals and businesses who offer professional services. This includes offering solutions, giving advice to clients, making educated recommendations, or representing the interests of others.
Some professions like the ones below may consider Professional Liability insurance.
|Home Care Providers and Businesses||Yoga Instructors|
There are many occupations and professions that may benefit from having a Professional Liability policy. For example, if your small business provides advice or services, represent others’ interests on behalf of others, or engages in other activities that could expose you to liability claims, you may want to consider having a policy in place to protect you and your business.
Professional Liability insurance requirements in New New Mexico
Some professional associations require their members to have minimum Professional Liability coverage to be certified and employed in their field. You can learn more information about Professional Liability insurance requirements on the professional association websites which you may be a member of.
It is possible that you may be required to carry Professional Liability insurance if you are working with clients. It is usually written into a business contract. It is possible that you will be required to show evidence of insurance prior to signing the contract, or beginning work on the project.
Having a Professional Liability policy even though you aren’t legally required to is something that small businesses may have as part of their business plan and protecting it for the long run.
How much does Professional Liability insurance cos in New Mexico?
Each Professional Liability policy is different and can vary in cost because each one is customized to meet the specific needs of the small company they protect. However, the cost of Professional Liability insurance for New Mexico small business is $845 annually.
Many elements are utilized by insurance companies to decide how much you will be charged each month for Professional Liability insurance (commonly known as “the “premium”). The following are factors that will influence the cost of the Professional Liability insurance premium:
- The nature of your business and the amount of risk you face – Insurance is expensive regardless of risk.
- The size and turnover of your business – Larger projects or a higher volume of work increase your risk of being in danger.
- The individuals who are covered – The person’s qualifications and suitability to perform their duties. If any claims were brought against the individual previously.
- Your business
- The history of your past claims
- The insurance coverage that is required
Specialists in your field will require special coverage designed to address specific needs. Professional Liability insurance can provide a safeguard for when your business may need it most.
Is Professional Liability the same as E&O insurance?
Yes, Professional Liability insurance and Errors and Omissions insurance are the same. It will protect you from claims of mistake, negligence or false representation. The insurance may pay for defense costs, as well as settlements or damages arising from a complaint.
Continue reading: Professional Liability vs E&O insurance
How to get Professional Liability insurance for your New Mexico business?
We make it simple to compare Professional Liability coverage and find a suitable insurance provider in the U.S. BizInsure will help you get the most protection at the lowest cost.
Learn more about Professional Liability insurance in the states where you work.
This information is provided as a guide only and may not reflect pricing for your particular business, as individual underwriting criteria will apply.
As with any insurance, coverage will be subject to the terms, conditions and exclusions contained in the policy wording. The information contained on this guide is general only and should not be relied upon as advice. The number of quotes provided varies between products, occupations and other underwriting factors determined by the insurers.