What to Know about Workers’ Compensation Insurance

in New Mexico

Facts about Workers’ Compensation Insurance in New Mexico

Workers’ compensation insurance is designed to cover the costs associated with workplace injuries and illnesses, including medical treatment and paid time off. In New Mexico, all construction companies and all other businesses that have at least three employees are required to carry this insurance. Exceptions are made for real estate agents, domestic servants, and farm/ranch laborers.

More New Mexico workers compensation insurance facts 

  • In New Mexico, workers suffer about 19,800 job-related injuries a year.
  • This equates to a rate of 3.1 injuries for every 100 workers.
  • Approximately 8,500 of these injuries require time off work, job transfers, or work restrictions.
  • On average, there are 40 work-related fatalities in this state every year.

Cost of Workers’ Compensation Insurance in New Mexico 

In New Mexico, the cost of workers’ compensation insurance is slightly higher than the national average. Your cost for coverage will be determined by your business industry, the number of employees you have, the types of jobs your employees do, your company’s overall payroll, and your safety record. New Mexico is an NCCI state, and the rates for all job types are regulated by the New Mexico Workers’ Compensation Administration. You can purchase your coverage through a commercial provider or through New Mexico’s state-administered fund. Because commercial providers are permitted to offer policy discounts of up to 25%, comparing quotes may save you money.

Average Cost Range for Workers' Comp Insurance in New Mexico (Per $50,000/yr in Payroll)

Why Choose an Independent Insurance Agent?

  • Independent agents provide trustworthy, personalized service.
  • Your local insurance professional can assist you with all of your coverage needs.
  • These agents work for you, not an insurance company, so they can shop for the best rates.

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What Does Your Workers’ Compensation Insurance Policy Cover?

Workers’ compensation is designed to benefit employees and employers alike. Employees can rest assured that workplace injuries will not cause them large financial losses, and employers can avoid costly lawsuits related to these injuries. You can expect a standard workers’ compensation policy in New Mexico to cover the following:

  1. Medical treatment: Workers’ comp will cover any medical treatment that is necessary to treat an employee’s work-related injuries. Employees should have no out-of-pocket costs except in the case of medical marijuana.
  2. Travel expenses: If an injured employee must travel more than 15 miles for medical care, workers’ comp will reimburse mileage, commercial carrier transportation costs, lodging if an overnight stay is needed, and up to three meals.
  3. Temporary total disability (TTD): Employees who need more than seven days to recover from a workplace injury can collect 2/3 of their average weekly wage until their doctor determines they can return to work.
  4. Temporary partial disability (TPD): Employees who are able to return to work but need to be on light duty that pays less than their regular job can receive benefits of 2/3 of the difference in pay.
  5. Permanent disability: If an employee is permanently disabled by a workplace injury, they are entitled to receive benefits for up to 500 weeks. The amount paid out will vary according to the employee’s impairment rating. 
  6. Death benefits: If a work-related injury or illness results in death, workers' comp will pay up to $7,500 in burial costs and will provide benefits to the employee’s spouse and surviving dependents. The amount paid out can vary.

Top Insurance Companies That Support Independent Agents in New Mexico

There are currently 146 independent insurance agents in New Mexico who are ready to help you find the right workers’ compensation policy for your business. These agents can answer your insurance-related questions, explain your coverage options, and assist you with finding the policy that offers the most value to your business. Contact an agent near you to start comparing customized workers’ compensation insurance quotes.

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Why Go Independent When Looking for Workers' Comp Insurance?

  • Expertise in your business
  • Multiple quotes from one agent
  • Get more value for your money

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