What is General Liability Insurance?
General liability insurance also knows as commercial general business liability protects your business from claims or lawsuits against you. It also helps pay for medical and legal costs if someone were to get injured on your property. This includes the cost of investigating claims, attorney fees, court costs, witness fees, settlements, and court-ordered judgments.
A general liability insurance policy can help pay for lawsuits over:
- Third-party Injuries: if a worker is injured and makes a claim against the employer
- Third-party Property Damage: if an accident causes damages to customer property
- Product Liability: if your product hurts someone or damages their property
- Advertising Injuries: if you are sued over slander or copyright infringements
What Does General Liability Insurance Not Cover?
Employee Injuries – If your employee becomes injured or sick while on the job and your business is held responsible, you will be held liable for the medical bills. If you want to protect your business against medical expenses from injured employees you would need to purchase additional insurance such as workers compensation.
Property Damage – Damage to your property is covered by property insurance, not general liability. This also includes vehicle damage. If your employee is driving to perform services or deliver goods, and they get in an accident, your business will need to pay for the damages. A commercial auto insurance policy can protect you against this.
Professional Errors – If a business makes a mistake and their product or services does not work as intended, they may be held liable and face a lawsuit. A professional liability policy can be customized to meet your business’s unique risks.
Employee Discrimination Lawsuits – If one of your employees claims they were wrongfully terminated and decides to sue you, general liability will not protect you. You will need additional EPL insurance to protect you against claims made by terminated employees.
Does My Business Need General Liability Insurance Coverage?
There are a variety of situations and circumstances that can result in a lawsuit against your business. It is important to be prepared incase a claim is made against your business. One lawsuit alone has the potential to cause you thousands of dollars in legal fees. A great way to protect against this type of situation is to make sure you carry enough general liability insurance for your unique business.
How Much Does General Liability Insurance Cost?
The best way to get a true estimate of general liability insurance costs is to get a quote specifically tailed to fit your business. The cost of liability will depend on several factors such as business size, products or services you sell, state requirements, and the amount of protection you want. Get started by filling out a quote request form.
New Mexico Business Insurance Requirements
Commercial liability insurance is not mandatory for businesses operating in New Mexico. It is, however, a wise investment to protect your company against potential legal threats. General liability insurance for companies in New Mexico may be a single policy or can be part of joint policies. Learn more by calling and speaking to one of our trained professionals at 575-524-8531.