While practically every business owner understands the need to carry some type of business liability insurance in NM, there still exists some that underestimate many of the exposures faced on a daily basis. According to a report from the US Chamber of Commerce, more than one in three businesses winds up having to defend against a lawsuit, and nearly 70 percent of these companies suffer financially as a result of not getting the coverage they need.
Your products could potentially cause injuries
If you manufacture and sell products there’s always the chance that someone will claim they were injured due to using your product. Product liability is just one factor. For example, if someone were to slip on a wet floor in a supermarket, or an oily floor in a repair shop, that could result in a claim against an employee or the entire company.
Even packaging that is difficult to open could result in cuts and lacerations to consumers. These are just a few examples of liability issues that are often overlooked by companies, their owners, and even managers. Unfortunately, most people wait until it’s too late and an accident or injury leads to litigation.
Most businesses carry general liability coverage as it protects companies from claims related to injuries and damages to other people’s property. Manufacturers need product liability to protect against defective products or services that cause harm. Professional Liability (Errors & Omissions insurance) will cover unintentional mistakes made by businesses that provide certain services to others.
If you have employees, employment practices liability insurance offers protection against claims of unfair treatment or discrimination, and directors and officers liability help protect a company’s directors and officers from lawsuits claiming they managed the business irresponsibly.
In the event that you or an employee accidentally hurts someone or damages property belonging to others during the course of work, business liability insurance in nm shields against lawsuits pertaining to several different exposures. Depending on the type of business you own, this can be a valuable policy and one that you need to purchase.