While the main drivers of New Mexico’s economy are tourism, oil and gas, and federal government operations, the state still relies on small businesses for its economic activities. Retail trade offers the highest taxable receipts, with over 55% of the workers in New Mexico being in the private sector’s independent businesses.
Businesses in New Mexico are legally required to have workers’ compensation for their employees. Workers’ compensation protects business owners and their employees in case of work-related injuries or illnesses. The requirements and benefits vary from state to state, and failure to non-compliance will attract fines.
If you are a new business owner in New Mexico, read on for all you should know about workers comp insurance.
Who Should Have Workers Comp Insurance?
The New Mexico law requires businesses, including non-profitable, religious organizations, charitable and agricultural organizations with three or more workers, to provide workers comp. These workers include seasonal workers, part-time workers, and family members.
A business in New Mexico is exempt from providing insurance to independent contractors, real estate salespeople, household workers, and Federal employees under the Federal Employees Compensation Act. If you are an employee and an executive in your corporation, you can exempt yourself from the workers’ comp by choice, but having one is beneficial.
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How Workers Comp Works In New Mexico
Workers comp aims to protect employees from injuries from on-the-job accidents or illnesses. Through a worker’s comp, an employee can enjoy medical care benefits, temporary or partial disability benefits, and death compensation benefits in fatal incidents.
Businesses with high risks, such as hotels, auto dealers, food and beverage manufacturers, cleaners services, and legal firms, lead in worker compensation purchases in New Mexico. You can access workers comp through a private insurer as a business owner. While doing this, compare the quotes from various insurers to get the one that matches your business needs.
Depending on the levels of risk in your business, you may be unable to access workers comp through private insurers. Consider the New Mexico Insurance Department assigned risk pool in such a case. Most of New Mexico’s new business owners consider the assigned risk pool when starting until their record allows them to buy from the commercial market. Self-insurance is another alternative but unadvisable for a new business as you need to spare a lot of money to cover potential claims.
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What Will Happen If You Lack The Workers Comp?
Failure to have workers comp for your employees is illegal and subject to fines and injunctions. You can also be prohibited from running your business or be held liable for workers comp payments from the state’s Uninsured Employers’ Fund, interest, and other fees.
Secure Workers Comp For Your Employees
Workers comp helps resolve employees’ claims in an incident at the workplace. In most cases, these claims will end in settlements where the party at fault will agree to pay the employee or their survivors for the damages. As a new business, having workers comp is necessary to save your business when such claims arise.