Workers Compensation Insurance in New Mexico (NM)

Small Business Coverage and Peace of Mind

Although New Mexico was the 47th state to be admitted to the Union in 1912, it has been inhabited for thousands of years. New Mexico has ancient ancestral ruins, blackened dormant volcanoes, awe-inspiring caves, white sand deserts, and towering snow-capped mountains. Little wonder the state is known as the Land of Enchantment.

The three main drivers of New Mexico’s economy are oil and gas production, tourism, and federal government operations at three major air force bases and the White Sands Missile Range. Like most states, New Mexico relies on small businesses for most of its economic activity. Around 55% of New Mexico’s workers in the private sector rely on independent businesses, which make up 95.7% of the state’s employers.1 Retail trade provides the most taxable receipts to the state government followed by construction, professional, scientific and technology services, and food services.

What are the New Mexico Workers’ Compensation Requirements?

All businesses that employ three or more workers are required to have workers’ compensation insurance in the state of New Mexico. Any person who does work at the business is considered an employee, so this includes owners if they work at the business, as well as family members, part-time, temporary, and seasonal employees. Agricultural, non-profit, charitable, and religious organizations are also required to carry coverage.2

Employers are exempt from providing coverage for independent contractors. Employees of a corporation who are also officers or executives for the corporation may exempt themselves from coverage but may have workers’ compensation insurance if they choose.2

Employers who fail to secure workers’ compensation insurance may be subject to fines or injunctions.2

How Does Workers’ Compensation Work in New Mexico?

Workers’ compensation protects workers and employers from losses caused by on-the-job accidents and job-related illnesses. Some of the leading small businesses purchasing worker’s compensation insurance in New Mexico include hotels, janitorial services, auto dealers, attorneys, and manufacturers of foods and beverages.

New Mexico Workmans’ Comp Coverage You Need

Interested in learning more about how EMPLOYERS can help your New Mexico business? Request a quote for workers’ compensation insurance from EMPLOYERS!

Thousands of small businesses trust EMPLOYERS for providing cost-effective workers’ compensation insurance for over a century. With our competitive pricing, financial stability and dependability, claims service, safety training and risk advisory programs, EMPLOYERS remains focused on keeping America’s small businesses not only working, but working safely.


1. “Small Business Profile, New Mexico,” SBA Office of Advocacy,. www.sba.gov/sites/default/files/nm12.pdf.

2. “When must employers carry workers’ compensation insurance?” State of New Mexico Workers’ Compensation Administration. https://workerscomp.nm.gov/Employers-Insurance