Do I need workers compensation insurance?

Workers Compensation Insurance Requirements in New Mexico

In New Mexico, whether you need workers compensation insurance depends on the size and nature of your business.

When Workers Compensation Insurance Is Required

• Employers with Employees: If your business has three or more employees, you are generally required to carry workers compensation insurance.
• Construction Industry: Businesses in construction must have workers compensation insurance regardless of the number of employees.
• Voluntary Coverage: Businesses with fewer than three employees can opt to purchase workers compensation insurance voluntarily to protect their workers and business.

Operational Considerations

• Employee Classification: Properly classify your workers to determine coverage needs and avoid misclassification issues.
• Compliance: Maintaining workers compensation insurance helps ensure compliance with New Mexico regulations and avoids penalties.
• Recordkeeping: Keep detailed records of employee payroll and insurance coverage for reporting and claims purposes.
• Insurance Providers: You can obtain workers compensation insurance through private carriers or the New Mexico Workers' Compensation Administration.

As of 2026

Requirements may change, so regularly check with the New Mexico Workers' Compensation Administration for updates to coverage thresholds and compliance rules.