New Mexico workers' compensation insurance: Your guide to requirements and getting a policy
If you’re a New Mexico employer looking to protect both your business and your team, you’re in the right place. At Beyond, we provide the essential information you need to understand how workers’ compensation works and how to stay compliant.
Workers’ compensation insurance plays a crucial role in protecting both employers and employees. For workers, it covers medical expenses, rehabilitation, and lost wages due to job-related injuries or illnesses. For employers, it offers financial protection—helping avoid costly lawsuits and potential penalties for noncompliance, which could even result in business shutdowns.
Under New Mexico law, any business with three or more employees must carry workers’ compensation insurance. These employees don’t all need to be located in New Mexico or reside there—if you have four employees, and only two work in New Mexico, the law still requires coverage for all four.
The definition of “employee” includes:
Active business owners
Part-time workers
Temporary and seasonal staff
In addition, construction and agricultural employers must carry coverage regardless of headcount.
Some types of workers are exempt from coverage, including:
Independent contractors
Real estate agents
Executive-level employees
Sole proprietors
Federal employees (covered by FECA)
Domestic workers
Inmates
Casual workers
Willfully negligent employees
It’s also worth noting: Workers’ comp laws do not apply on tribal lands. Each tribe sets its own rules. Businesses operating on reservations or pueblos should confirm requirements through tribal authorities or the New Mexico Workers’ Compensation Administration (WCA).
New Mexico’s workers’ comp insurance pays for necessary medical care related to work injuries or illnesses and includes indemnity benefits such as:
Temporary Partial Disability (TPD)
Temporary Total Disability (TTD)
Permanent Partial Disability (PPD)
Whole Body Impairment
Permanent Total Disability (PTD)
Survivor/death benefits, including funeral expenses
Employers can secure coverage through:
Commercial Insurance
Purchase a policy from any provider licensed by the New Mexico Office of the Superintendent of Insurance (OSI).
Assigned Risk Pool
For high-risk or new businesses unable to get coverage on the open market.
Self-Insurance
Available to large companies and public entities with sufficient funds. Requires approval from the WCA.
Additional fee: New Mexico charges $4.30 per employee per quarter; $2.00 of this can be withheld from the employee’s wages. Payments go to the Taxation and Revenue Department.
If a business is caught without proper coverage:
It is referred to the WCA Enforcement Bureau
The business may be shut down until proof of coverage is provided
Employees must:
Notify the employer within 15 days of the incident
Complete a Notice of Accident form or provide written notice
Employers must:
Sign and date the Notice of Accident form, giving a copy to the worker
Notify the insurer within 72 hours
Ensure the First Report of Injury (FROI) is submitted promptly to the WCA
If it’s an emergency, the worker may go to any ER. For ongoing treatment:
The employer selects the provider and must provide this info in writing
After 60 days, workers can submit a Notice of Change of Health Care Provider (HCP) if they wish to switch doctors
Employers have 3 days to file an objection to the change
For more details, contact the New Mexico Workers’ Compensation Administration (WCA) or consult the resources below:
Carrying workers’ compensation isn’t just a legal requirement, it’s a smart business decision. It protects your team, your finances, and your future. If you need help setting up a policy, Beyond is here to guide you every step of the way.
