Good Evening Councilor (and Mayor) …….,
The City has been reimbursing some small businesses for damages they have incurred but you are missing the real point. I am sure along with a City business license you require the business to carry a certain level of insurance. These costs are not some onetime payment and as I explain and for business operating on a small margin, which many in Las Cruces do, any increase due to no fault of their own can push them to close their doors.
How does crime and vandalism affect insurance premiums?
As vandalism and theft continue to increase in frequency and severity, small business insurance is significantly impacted. Insurance companies must adjust their rates and coverage to account for the heightened risk of these crimes. Here are some ways in which small business insurance is affected by vandalism and theft:
1. Higher premiums: Insurance companies may increase premiums for small businesses in areas with high rates of vandalism and theft. This is done to cover the increased likelihood that the business will file a claim for damages.
2. Limited coverage: In some cases, insurance companies may limit coverage for vandalism and theft, especially if the business is located in a high-risk area. Small businesses may need to purchase additional coverage to fully protect themselves against these crimes.
3. Deductible increases: Insurance companies may raise deductibles for vandalism and theft claims to mitigate the financial risk of insuring a business in a high-crime area. Small businesses may need to pay more out of pocket before their insurance kicks in.
4. Security requirements: Insurance companies may require small businesses to implement specific security measures, such as installing security cameras or alarm systems, to reduce the risk of vandalism and theft. Failure to meet these requirements may result in higher premiums or limited coverage.
Overall, as vandalism and theft rates continue to rise, small businesses are facing increased challenges when it comes to obtaining affordable, comprehensive insurance coverage. Also, as businesses close due to these unaffordable increases it puts pressure on the entire community financially and creates further escalation of crime.
Rob Wood
3427 Chimney Rock Rd 88011
575-635-0803
