What to Know
You are required to carry workers' compensation insurance in New Mexico if:
- You have three or more employees working in New Mexico, whether full-time or part-time.
- You’re going to work for someone else. Unless you’re an employee, you won’t be covered by their insurance policy and may need to provide proof of work comp. Are you an employee or an independent contractor? 10 ways to tell >>
Other regulations that may affect you:
- Workers' compensation insurance covers wage replacement and medical bills for employees injured on the job. To protect against other injuries at your place of business, you may need general liability insurance. Learn more about general liability >>
Where to Get It
- New Mexico has a private market, meaning that you can purchase workers' compensation insurance from any private insurance carrier or agency that is licensed to write in that state. WorkCompOne can write workers' compensation policies in any U.S. state except those that practice state-run workers' compensation (Ohio, Washington, North Dakota and Wyoming).
- New Mexico has a state fund that competes with the private market. You can contact New Mexico Mutual if you are unable to secure coverage from a private insurance carrier. State funds accept higher-risk businesses, but their rates are often higher.
- If you’re still having trouble finding coverage, you can contact New Mexico's assigned risk pool, which will help you find coverage.
Factors That Impact Coverage
- You are a sole proprietor or partner: In New Mexico, you are excluded from coverage but have the option to include yourself. In counting the number of employees to determine whether you must have coverage, owners must be counted.
- You are a corporate officer or member of an LLC: New Mexico includes you in coverage, but you have the option to exclude yourself if you own 10% or more of the company. However, in counting the number of employees to determine whether you must have coverage, officers or executives who have exempted themselves must be counted.
- You are a contractor: You must be licensed in New Mexico by the Construction Industries Division. If all your employees are required by law to be licensed by the Construction Industries Division, you must provide workers’ compensation for your business, regardless of the number of employees.
- You are a real estate salesperson: You are exempt from coverage.
New Mexico Key Resources
If you employ workers in multiple states or your employees are temporarily working out-of-state, you need to purchase insurance for all the states where your workers are located, according to each state’s laws.
The nature of your business, number of employees being covered and past coverage and claims are all factors in how much your premium will cost. Learn more about workers' comp insurance rates >>