As a general contractor in New Mexico, it is important to understand the types of insurance needed for your business. Insurance can help protect you from financial losses due to unforeseen events and liabilities, so it is essential to have the right policy in place.

Knowing which kinds of coverage are available can help provide peace of mind that any related incidents or events are taken care of - so read on to learn more about the necessary insurance needs for general contractors in New Mexico.

General Liability Insurance

General liability insurance is another essential policy for general contractors in New Mexico. This coverage provides financial protection in the event of an incident or accident resulting in property damage, bodily injury, and/or personal injury.

General Liability provides the following coverage:

Medical payments: In case of an accident on your job site, general liability coverage can offer medical payments to injured individuals. This includes payments for treating physical or emotional injuries, as well as medical memorabilia, X-rays, hospital costs, and more.
Property damage: In addition to medical payments, general liability coverage can protect if an accident or incident causes property damage. This includes repairing or replacing damaged structures, equipment, and other materials on your job site.
Legal fees: Legal fees are another important aspect of general liability insurance. In the event that you face legal action from a third party, this coverage will provide financial protection for court costs, attorney fees, settlements, and other related expenses.
Slip-and-fall injuries: Slip-and-fall accidents are unfortunately common on job sites and can result in serious injury to visitors or workers. General liability insurance provides coverage for these types of accidents so that you won’t be financially liable should an incident occur.

Professional Liability Insurance

Professional liability insurance is a type of coverage specifically designed for general contractors in New Mexico. This coverage provides financial protection if you are accused of making an error or omission on a job site, resulting in property damage, personal injury, or economic loss.

This type of policy can provide the following coverage:

Professional negligence (actual or alleged): Professional negligence coverage provides financial protection if you are accused of making an error or omission which results in property damage, personal injury, and economic loss. This can include compensation for legal fees, court costs, settlements, and other related expenses associated with defending yourself against a claim.
Damages for defective work: Damages for defective work coverage can compensate the client if you are found liable for any damage caused by incorrect work. This coverage can help pay for repairs, replacements, and any other costs associated with correcting a mistake on a job site.
Legal defense costs: If you are taken to court for a dispute related to your work, professional liability insurance can provide coverage for legal defense costs. This includes attorney fees, court costs, settlements, and other related expenses associated with defending yourself against a claim.
Legal judgments: Legal judgments coverage provides financial protection if you are found liable for any damages due to your work. This can include compensation for medical bills, lost wages, property damage, and more.

Workers’ Compensation Coverage

Workers' compensation insurance is an important policy for general contractors in New Mexico, as it provides financial protection if your employees are injured or become ill due to their job tasks. This type of insurance can cover medical expenses associated with the injury or illness and provide compensation for lost wages if the employee is unable to work. Independent contractors need to be covered by this coverage - as a general contractor, you may be held liable and face fines if any accidents occur on-site involving your subcontractors, and they are not listed under your policy.

Workers' compensation insurance pays for:

Medical expenses: Medical expenses can include medical bills, physical therapy, medication, and prosthetics. In the event that an employee is injured or becomes sick due to their job tasks, these costs will be covered by workers' compensation insurance. This coverage also includes any reasonable and necessary transportation costs associated with these medical treatments.
Lost wages: Lost wages are what an employee would have earned had they not been injured or become ill from their job duties. Workers' Compensation Insurance can help cover this income loss by providing weekly payments for a set period of time - however, it's important to understand that this compensation is typically lower than the employee's full wages. In some cases, long-term disability benefits may also be provided by a workers' compensation policy.
Employer liability: Employer liability is another important aspect of workers' compensation insurance. This coverage provides protection if the contractor is held legally responsible for any workplace accidents or injuries. It can cover legal fees, settlements, and related costs that may arise from such incidents. Additionally, this insurance can also provide protection against third-party claims, so you will be covered if a subcontractor is injured while working on your job site.
Permanent injury: Permanent injury or disfigurement is a type of compensation that an employee can receive if they suffer a serious or permanent injury while on the job. This coverage will provide financial support for the employee to help them adjust to life after their accident and hopefully return to work.
Retraining: Retraining coverage can provide financial assistance to an employee who cannot return to their previous job due to a permanent injury or illness. This coverage can help pay for educational costs, licensing fees, and any other expenses associated with the retraining process so that the employee can find suitable employment after their accident.
Survivor benefits: Survivor benefits are provided to the family of an employee who passes away due to a workplace injury or illness. These benefits can help cover funeral costs and provide financial support to their dependents. This coverage provides peace of mind and stability to those left behind after a tragedy.

Tools & Equipment Insurance

Tools and equipment coverage protects your gear, whether it is stored in your vehicle, trailer, or at a job site. This coverage helps pay for replacements or repairs if your tools are lost, damaged, or stolen. It can be added as an additional option to general liability insurance.

Tools and equipment insurance pays for:

Damaged equipment: If your tools or equipment are damaged in an accident or other incident, this coverage can compensate for repairs or replacements.
Stolen gear: If a theft occurs on your job site, tools and equipment insurance will help pay for replacing any stolen items.
Accidental damage: This type of coverage can provide protection against accidental damage to your tools. This includes incidents such as dropping a tool or having it damaged in an unexpected way.

Commercial Property Insurance

Commercial property insurance covers a general contractor's business property, such as repairs and construction expenses. It applies whether the contractor owns or leases the building where they operate their business. It covers the business property and helps to pay for any damages or losses. Commercial property provides coverage for the following:

Equipment breakdowns: If a contractor's tools or equipment experiences mechanical failure, this type of insurance can help to pay for repairs or replacements.
Inventory damage: If a contractor's business inventory is damaged in an accident or other incident, commercial property insurance will provide coverage for the cost of replacements.
Business goods and gear: If a contractor's business goods or gear are lost, damaged, or stolen, this type of coverage can provide financial protection.
Fire and weather damage: Commercial property insurance will cover any damages caused by extreme weather events (such as floods and hurricanes), as well as fire-related incidents.
Business income interruptions: This type of coverage can help to pay for lost income if the contractor is forced to close their business due to an event covered by the insurance policy.
Buildings: Commercial property insurance can provide coverage for buildings owned or leased by a contractor. This includes the cost of repairs and replacements due to any covered incident.
Personal property: Coverage is also available for personal items owned by the contractor, such as furniture and electronics, if they are damaged or stolen.

These are some of the main types of insurance that general contractors in New Mexico need to protect their businesses from potential risks and liabilities. While each policy will differ depending on the individual's needs, it is important to have the right coverage in place to safeguard your business. With the right insurance, you can rest easy knowing that your business is protected if something unexpected occurs.

Have Questions? Contact Elemental Risk Management Today!

If you are a general contractor in New Mexico and need help understanding the different types of insurance available, the experts at Elemental Risk Management can provide you with the answers. Our team has years of experience helping contractors find the right coverage for their businesses. We understand the specific needs of contractors and can customize a policy to fit your unique situation. Don't be caught off guard by an unexpected accident or incident. Protect your business and finances with the right insurance coverage.

Contact us today to learn more about how we can help you. With our guidance, you can rest assured that your business is secure and ready for whatever comes its way.

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If you are preparing to start a valet service at your business, be sure to consider safety issues, legal requirements, and additional coverage options so that you can find the best possible coverage for your budget and needs.

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