Two Fundamental Business Liability Coverages For Financial Advisors

new mexico business insurance

As a new financial advisor, signing up for New Mexico business insurance can be a challenge. Without the proper expertise, you may end up with a policy that doesn’t provide the coverage that’s necessary for your business. The best way to ensure that this doesn’t happen is to work with an experienced agent. As you search for the right agent, here are two basic liability coverages that you should expect to include in your policy.

General Liability

General liability protects you in case a lawsuit is brought against you by a third party claiming that they sustained an injury or property damage because of your business. An example of this is a client slipping and injuring themselves in your office. In such a scenario, your policy will pay for your legal costs including your attorneys’ fees, judgments and settlements.

Professional Liability

Professional liability is similar to general liability in that it protects against third-party lawsuits and covers your legal costs. Professional liability protects explicitly against scenarios where an error or omission on your part led to the third party experiencing a loss. An example of this is a client suffering significant losses after consulting with you about their investments.

Of course, you’ll want to include other coverages such as property insurance and workers’ compensation as your needs dictate. An agent who’s experienced with New Mexico business insurance can help you customize your policy to meet your exact requirements.

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