How does workers' comp work in New Mexico?

Rates on Workers' Compensation Insurance in New Mexico are slightly higher than the national average. Although they are on the rise. New Mexico does have a state fund administered by New Mexico Mutual Insurance and it partners with the National Council on Compensation Insurance to be the assigned risk provider. Typically states who have a strong state fund enjoy lower rates, but because of a lack of competition amongst carriers rates in New Mexico are on the rise.

Because rates in New Mexico are on the rise, now is a great time for businesses to shop their coverage. At Workers Compensation Shop.com, we partner with more than a dozen carriers and are able to shop your policy amongst many to make them compete for your coverage.

Call today to speak with one of our experts at 888-611-7467 or start a quote here online. It only takes a few minutes.

Workers' Comp Rules & Information for New Mexico

State Insurance Directives Regarding Covid-19

Discretionary order in effect from 03/13/2020 - further notice.

State Orders Regarding Insurance Claims Related to Coronavirus

No current state orders.

New Mexico Workers' Comp Administration

2410 Centre Ave SE
PO Box 27198
Albuquerque, NM 87125-7965
505-841-6000
800-255-7965

What is Workers' Compensation?

The basic purpose of the Workers’ Compensation is to provide wage replacement benefits and medical treatment for employees who have been injured or become ill due to a work-related injury or illness. It prevents the employer from bearing the costs of injuries that occur during normal business operations.

New Mexico Assigned Risk

New Mexico partners with the National Council on Compensation Insurance (NCCI). NCCI gathers data, analyzes industry trends, and prepares objective insurance rate and loss cost recommendations. NCCI is the nation’s most experienced provider of workers compensation information, tools, and services. New Mexico uses NCCI to determine rates on workers' compensation coverage and to administer the assigned risk for the state. If your business for any reason cannot find coverage on the open market the assigned risk will offer coverage. Coverage in the assigned risk is normally higher than the open market.

How does workers comp help my business?

Your business benefits from workers' compensation coverage, by not being liable for injuries that occur as a part of normal business operations. This applies whether the injury was the fault of the business or was caused by negligent actions of the employee. You can move forward with your business operations knowing that if one of your employees is injured because of something that happens as a normal part of your business operations, your business is not liable for the costs.

New Mexico State Fund

New Mexico has a competitive state fund partner, New Mexico Mutual Casual Company. Created in 1991 by New Mexico State Lawmakers and leaders in the insurance industry, New Mexico Mutual Casualty Company was formed to assure competitive workers’ compensation coverage in New Mexico for all New Mexico businesses. Businesses in New Mexico needed this at the time because many national carriers had left the workers’ compensation market in New Mexico. Today, New Mexico businesses today enjoy a competitive workers’ compensation market and rates that are less than 47% of what they were in 1991.

How does workers comp help my employee?

Employees benefit from workers comp coverage by having lost wages covered while they are hurt or sick and not able to work. It also pays for medical costs they might incur as a result of the sickness or injury.

More Programs and Options

We're always working with our insurance carriers to develop specialized programs for a broad range of industry class codes. Our Target Programs are designed to streamline the underwriting process and help ensure we offer the lowest rates available anywhere.

  • Contractors
  • Home Health Care
  • Janitorial Services
  • Transportation
  • Hospitality
  • And More
New Mexico Work Comp Information

New Mexico Workers Comp Alert

The New Mexico Workers' Compensation Administration, or WCA, indicates that employers who are required to have coverage but don't may be subject to having their business closed. If an employee is injured while an employer is illegally without coverage, the employer may be liable for the entire cost of the claim plus penalties.

Let Workers Compensation Shop.com help your business navigate workers comp insurance in New Mexico.

What Does Workers' Compensation Insurance Cover?

...
Workers' comp coverage protects employees when injured. It makes good financial sense for both parties.
Injuries and accidents happen. A workers' comp policy is a no-fault system that pays for these accidents and claims. It's required by law in most states.
  • Loss of income for employees unable to perform job duties
  • Medical expenses for employees injured on the job
  • Retraining expenses for employees unable to return
  • Permanent injury or disability for lasting injuries
  • Survivor benefits if employees are killed on the job
Coverage does not protect employers from everything. Sometimes employees and employers can be negligent.
...
In some instances, workers' compensation coverage will not protect employers or employees from the legal liability resulting from a workplace injury.
  • Injuries resulting from a violation of the law
  • Incidents resulting from employees' use fo drugs or alcohol
  • Injuries that did not occur in connection with the job
  • Clear company policy violations
  • Injuries that did not occur in connection with the job

Workers' Comp Includes Employers Liability Insurance?

Employers liability insurance is an additional layer of coverage included as part of a workers' compensation insurance policy. Employers Liability is know as Part 2 of the policy. It adds two additional coverages for employers:

Employers Legal Liability and Legal Defense Costs

In todays world, there are a variety of reasons employees and third-parties sue employers for damages. Here a some common types covered by employers liability insurance:

Third Party Lawsuits

Your employee sues another party that may have contributed to the injury, In turn, the third party sues your business.

Consequential Bodily Injury

Another party or individual is injured while providing care for the injured employee.

Dual Capacity Legal Action

An employee files a claim but also attempts to sue the employer for being responsible in other ways outside of the employment relationship.

Loss of Consortium

A spouse sues for damages caused by the loss of companionship or relations.

Employers Liability coverage is not included with coverage in the four monopolistic states. Employers in these states can endorse this coverage onto their General Liability policy. That coverage is commonly know as Stop Gap Coverage.

Visit NCCI for more resources and information about workers' compensation class codes. Visit United States Department of Labor for more information about government agencies managing workers compensation insurance rates.

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