New Mexico Workers Compensation Insurance: Costs $ Quotes from $28/mo

New Mexico workers compensation insurance, a lifeline for employers and employees alike, stands as a testament to the state’s commitment to worker protection. In this article, we’ll explore the nuances of workers compensation insurance in New Mexico, diving deep into its significance, legal requirements, benefits, and the most reputable insurance providers.

What is New Mexico Workers Compensation Insurance?

New Mexico Workers Compensation Insurance, or workmans comp insurance NM, is a crucial aspect of workplace safety and legal compliance. It provides essential support for injured employees while shielding employers from potential legal liabilities.

In practical terms, this insurance system acts as a safety net, ensuring employees who suffer workplace injuries receive the necessary financial assistance for medical bills, rehabilitation, and lost wages. It also mitigates the risk of employees pursuing legal actions against their employers, creating a more stable and predictable business environment.

Workmans Comp Insurance NM embodies the state’s commitment to a secure and fair work environment. It promotes the well-being of workers by offering them a safety net in case of accidents while also ensuring that employers can operate with greater peace of mind, knowing they have legal protection. This system forms a cornerstone of the state’s labor laws, offering a practical solution that benefits both employers and employees in the complex landscape of workplace dynamics.

When Do You Need to Get New Mexico Workers Compensation Insurance?

Determining when your business needs New Mexico workers compensation insurance hinges on the state’s intricate legal framework. NM workers compensation law mandates that employers must secure coverage upon hiring their first employee, whether part-time or full-time. The New Mexico Workers Compensation Act provides the comprehensive guidelines employers and employees must adhere to.

Hiring the First Employee

New Mexico workers compensation insurance requirements state that all businesses with one or more employees should purchase workers compensation insurance. Hiring your first employee without purchasing workers comp is subject to fines and penalties.

Legal Compliance

Purchase workers compensation insurance to comply with the law. The New Mexico workers compensation insurance is not a discretionary matter. It is a legal obligation firmly embedded in the state’s regulations and statutes. 

The state has set forth workers compensation laws and requirements to maintain an equitable and secure work environment. Businesses must adhere to these laws to ensure legal compliance. Failure to do so can result in fines and legal actions, highlighting the seriousness of this mandate.

Dual Protection 

The New Mexico workers compensation requirements offers a dual layer of protection. It immediately supports injured workers, ensuring their welfare while safeguarding employers from potential legal disputes and financial liabilities. 

This dual protection mechanism under new mexico workmans comp laws fosters a more stable and predictable business environment. 

Employees can be assured of support during need, reducing the likelihood of pursuing legal actions against their employers. Employers, in turn, can operate with confidence, knowing they have legal protection against potential litigation arising from workplace injuries.

What Government Agency Oversees New Mexico Workers Compensation Insurance?

In New Mexico, the oversight of workers compensation insurance is entrusted to the State of NM Workers Compensation Administration, a pivotal entity integral to the state’s regulatory framework. This agency plays a multifaceted role in safeguarding the interests of both employees and employers, ensuring the smooth functioning of workers compensation programs and adherence to New Mexico workmans comp laws. Its functions are:

  • Enforcement of NM Workers comp law: The primary function of the State of NM Workers Compensation Administration is to enforce rules regarding workers compensation insurance. It ensures that businesses operating within the state comply with the legal requirement of providing workers compensation insurance to their employees.

  • Dispute resolution: The agency serves as a mediator in resolving disputes related to workers compensation claims. In cases where employees or employers face challenges or conflicts regarding benefits or coverage, the Administration facilitates fair and just resolutions.

  • Compliance oversight: It monitors and enforces compliance with NM workmans comp laws, ensuring that businesses adhere to the stipulated regulations regarding workers compensation insurance. This oversight helps maintain a level playing field and consistency across the state.

  • Benefit disbursement: The State of NM Workers Compensation Administration oversees the distribution of benefits to injured workers. It ensures that eligible employees receive the compensation they are entitled to, including medical expenses, rehabilitation, and wage replacement benefits.

  • Educational initiatives: Besides regulatory oversight, the agency plays an active role in educating employers and employees about their rights and responsibilities under workers compensation laws. This includes disseminating information about the claims process, coverage requirements, and legal obligations.

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Which Businesses Are Exempt from Getting New Mexico workers Compensation Insurance?

The New Mexico workers compensation requirements vary, and specific categories of businesses enjoy exemptions from the mandatory obligation of obtaining such coverage. These exemptions are granted in accordance with the nature and size of the businesses, aligning with the state’s regulatory framework. Here are the categories of businesses that may be exempt:

Sole Proprietors and Partnerships

Sole proprietors and partnerships, especially those without employees, are often exempt from securing NM workers compensation insurance. This exemption is founded on the principle that since these business structures do not hire employees beyond the owners, there is no compelling need to provide coverage. It acknowledges the unique nature of solo entrepreneurship and the absence of a distinct employer-employee relationship within such entities.

Agricultural Employers with Limited Workforce

Agricultural employers, particularly those with a small number of employees, may find themselves eligible for exemption from the obligation of obtaining workers compensation insurance. 

However, the specific criteria for this exemption may vary, and it is imperative for businesses falling within this category to verify their eligibility with the State of NM Workers Compensation Administration. The exemption acknowledges the diverse scale of agricultural operations, recognizing that smaller agricultural enterprises may have different resource capacities.

Domestic Workers

Another category often exempted from the requirement of workers compensation coverage includes domestic workers, such as housekeepers and nannies. This exemption primarily applies when these workers are employed within private residences, emphasizing the unique dynamics of domestic employment relationships. The exemption aligns with the recognition that these roles typically do not involve the same level of industrial or commercial workplace risks as larger enterprises.

Certain Real Estate Agents and Brokers

Real estate agents and brokers operating as independent contractors may also be exempt from the necessity of obtaining workers compensation insurance. This exemption, however, is contingent upon their employment status and the nature of their contractual arrangements. The exemption acknowledges the nuances of the real estate industry, where independent contractors often operate with a higher degree of autonomy.

Independent Contractors

Businesses that engage independent contractors, who are not considered traditional employees, are generally exempt from providing workers compensation coverage for these contractors. However, it is crucial to note that determining an individual’s status as an independent contractor must closely align with New Mexico workmans comp laws to qualify for this exemption. This exemption recognizes the contractual and operational distinctions between employees and independent contractors, emphasizing the flexibility of business arrangements within the state.

How Much Money Does New Mexico Workers Compensation Insurance Give?

New Mexico Workers Compensation Insurance is vital in safeguarding employees who encounter workplace injuries or disabilities by offering various benefits, including financial assistance and medical support. To better understand the scope of these benefits, here’s an overview of various worker compensation benefits provided under the New Mexico workers comp laws:

Temporary Partial Disability Benefits

Temporary Partial Disability benefits aim to support employees who can return to work but might earn less than their pre-injury wages due to the injury’s impact. Under New Mexico workers compensation laws, these benefits cover a portion of the wage differential. The specific amount can vary depending on the extent of wage loss and is often capped at a certain percentage of the employee’s average weekly wage, around 66.67%.

Temporary Total Disability Benefits

Temporary Total Disability benefits are applicable when an employee cannot work due to a workplace injury. These benefits replace a portion of the employee’s lost wages during recovery. The amount is usually calculated as a percentage of the employee’s average weekly wage, which can be approximately 66.67%, subject to statutory limits.

Permanent Partial Disability Benefits

Permanent Partial Disability benefits come into play when an injured worker sustains a permanent impairment but can still work to some extent. The amount of these benefits is determined based on the severity of the impairment, with a specific schedule in place to assign values to different types of injuries. The maximum benefit amount varies by state regulations but may be approximately 70% of the employee’s average weekly wage.

Permanent Total Disability Benefits

Permanent Total Disability benefits are provided when a workplace injury renders an employee incapable of performing substantial gainful work. These benefits typically equate to a percentage of the employee’s average weekly wage, which can be around 70%, subject to statutory maximums.

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How Long Will New Mexico Employees Wait Before Receiving Benefits?

The New Mexico Workers Compensation Insurance system is designed to provide timely support to employees who sustain injuries or disabilities in the workplace. However, there is a waiting period, as regulated by New Mexico workmans comp laws before workers can begin to receive benefits.

The waiting period, often referred to as the “waiting period of disability,” is essentially the timeframe during which an injured employee must be unable to work due to the injury before they become eligible for workers compensation benefits. Here’s a breakdown of this waiting period:

Waiting Period Duration

The waiting period duration in New Mexico typically spans seven days. This means that an injured worker must be unable to work for at least seven consecutive days before becoming eligible to receive benefits under the workers compensation program. The waiting period begins on the day the injury occurs or the day the employee becomes unable to work due to the injury.

Purpose of the Waiting Period

The waiting period serves several purposes within the workers compensation system. Firstly, it helps filter out minor injuries or short-term absences from work that do not require long-term benefits. This ensures that the system efficiently directs resources to those employees with more substantial injuries or disabilities.

Retroactive Benefits

Importantly, if an injured employee’s disability extends beyond the seven-day waiting period, they may receive benefits retroactively, starting from the date of the injury. This retroactive provision aims to compensate workers for the initial waiting period during which they could not work.

Exceptions and Considerations

It’s crucial to note that there can be exceptions and variations in waiting period regulations based on specific circumstances, the severity of the injury, and individual cases. Employers and employees should consult with legal experts or insurance providers to understand the waiting period’s intricacies in their particular situation.

Penalties for Not Getting Workers Compensation New Mexico

New Mexico takes workers compensation laws seriously to safeguard both employees and employers. Failure to adhere to New Mexico workmans comp laws can lead to significant penalties for employers. Below, we discuss the penalties associated with noncompliance:

Civil Penalties

Employers in New Mexico who fail to secure workers compensation insurance may face civil penalties. These penalties can result in fines levied by the state authorities. The specific amount of these fines can vary based on factors such as the duration of noncompliance and the number of employees affected.

Legal Liability

Noncompliance with workers compensation laws can expose employers to legal liability. In the event of a workplace injury, employers who lack the required insurance coverage may be held financially responsible for the injured employee’s medical expenses, lost wages, and other related costs.

Criminal Penalties

In cases of egregious noncompliance or willful neglect of NM workers compensation requirements, criminal penalties may apply. Employers guilty of intentionally disregarding these laws can face criminal charges, fines, and even imprisonment.

Employee Lawsuits

Employees who sustain workplace injuries and do not receive the required workers compensation benefits due to their employer’s noncompliance have the legal right to pursue civil lawsuits against their employer. In such cases, employers may be required to compensate the injured employee for medical expenses, lost wages, and pain and suffering.

Additional Costs

In addition to penalties, employers who fail to provide workers compensation coverage may incur additional costs associated with legal fees, court proceedings, and potential settlements. These financial burdens can significantly impact a business’s financial stability.

Reinstatement of Benefits

If an employer previously provided workers compensation insurance but allowed coverage to lapse or discontinued it unlawfully, they may be required to reinstate benefits retroactively for injured employees. This can result in substantial back payments.

New Mexico Workers Compensation Insurance Cost

The average New Mexico workers compensation fee is $31 per month or $372 per year. Factors that affect premiums are location, payroll, number of employees, business history, claims history, and more. Here’s a table providing further details on NM workers comp fee by showing the rates of the best companies:

Company Cost per Month Cost per Year Best for
NEXT $26 $312 Best overall; Fastest workers compensation insurance.
The Hartford $28 $336 Medium and large businesses.
Tivly $30 $360 Comparing workers compensation insurance quotes over the phone.
Thimble $32 $384 Businesses with fluctuating staffing requirements.
Hiscox $38 $456 Businesses seeking industry-specific insurance expertise.

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Best New Mexico Workers Compensation Insurance Companies

When choosing the best New Mexico workers compensation insurance companies, assessing each company’s offerings is crucial. Here are companies we recommend. Read some of the reviews below to know their pros, cons, and average rate. 



  • Competitive rates.

  • Streamlined online application.

  • Exceptional customer service.

  • Premium discount if you bundle workers compensation insurance with other policies.

  • Get an online certificate of insurance. 

  • Use a mobile app to view and manage your insurance policies. 


  • Couldn’t find any

NEXT is a top choice for small and medium-sized businesses in New Mexico. Their offerings provide comprehensive coverage backed by a user-friendly online platform for seamless policy management.

Best for: Best overall; Fastest workers compensation insurance. 

Average cost: $26 per month

Our rating: 10/10

The Hartford


  • Extensive experience in workers compensation.

  • Tailored solutions for various industries.

  • Robust financial stability.


  • Higher premiums for certain high-risk industries.

The Hartford is a reliable option for businesses of all sizes in New Mexico. With decades of experience, they provide specialized workers compensation solutions to meet the unique needs of different industries.

Best for: Medium and large businesses.

Average cost: $28 per month

Our rating: 10/10



  • Call a representative and compare quotes over the phone. 

  • A partner of many reputable insurance companies. 

  • Tivly offers transparent pricing. 


  • You can’t get an instant online quote. 

Tivly distinguishes itself by offering flexible coverage options, making it ideal for businesses seeking tailored workers compensation insurance in New Mexico. Their efficient claims processing ensures quick support during times of need. Call now and talk with a representative to compare quotes over the phone. 

Best for: Comparing workers compensation insurance quotes over the phone. 

Average cost: $30 per month

Our rating: 8/10



  • Thimble offers on-demand coverage.

  • Get your workers comp policy at an affordable rate.

  • Allows for easy policy customization.


  • Thimble may not be suitable for businesses with fluctuating employee numbers.

Thimble introduces on-demand workers compensation coverage, catering to businesses with varying workforce sizes. Their adaptable policies allow for customization based on specific needs. Consider working with Thimble as it quickly offers an estimate of your rates. Moreover, it’s online channel for customer service is highly responsive. 

Best for: Businesses with fluctuating staffing requirements.

Average cost: $32 per month

Our rating: 9/10



  • Hiscox offers specialized coverage for unique industries.

  • A company offering insurance in USA and abroad.

  • Hiscox has a strong financial stability.

  • Allow you to enjoy online quotes and efficient policy management


  • Hiscox may impose higher premiums for high-risk businesses. 

Hiscox provides workers compensation coverage for unique and high-risk industries in New Mexico. Their online platform simplifies the application process and policy management. This company offers an online quote. However, you can also contact an agent to get covered. 

Best for: Businesses seeking industry-specific insurance expertise.

Average cost: $38 per month

Our rating: 8/10

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