In New Mexico, you might need to satisfy a few requirements before you start a small business, no matter which industry you belong to. One of the most important and non-negotiable prerequisites is Workers’ Compensation insurance. This plan can serve as your safety net in case an employee files a Workers’ Compensation claim for an injury.
For new business owners who aren’t aware of Nebraska Workers’ Compensation insurance, PolicySweet® has shared some information that you may want to know. We also offer comprehensive insurance plans to help you satisfy this requirement. Keep reading to learn more or reach out to us to get a quote.
Why Is Workers’ Compensation Insurance Important for Businesses?
Workers’ Compensation laws are meant to help protect employees from financial issues related to workplace injuries. They may lose a source of income, have to pay medical bills, or need additional vocational training after suffering an injury, and Workers’ Compensation can help ensure that they can get financial reparation for these damages.
According to Workers’ Compensation laws, the employer can be liable to pay for the damages of an injured employee. These payments can be a major financial loss for businesses. Thankfully, Workers’ Compensation insurance can provide coverage for these expenses. The company may not need to shoulder the payments.
Unique Qualities of New Mexico Workers’ Compensation Insurance
Workers’ Compensation laws differ from state to state, and New Mexico has distinct policies and nomenclature. Here are some important points you should remember before establishing a business in the state.
- Most Businesses Are Required To Get Insurance: The New Mexico Workers’ Compensation Administration mandates that businesses with three or more employees may be required to purchase Workers’ Compensation insurance. For those with fewer than three workers, coverage may not be required but still encouraged. One exception is construction businesses, which may need to have coverage no matter how many workers are employed.
- Where To Buy Insurance: Unlike some states in the U.S., New Mexico is not monopolistic. Businesses can purchase their insurance from private and commercial carriers like PolicySweet. The state-administered fund or the assigned risk pool is also available for companies that may not be able to secure policies from private companies. If your business is large enough and you have the required qualifications, you may opt to self-insure.
- Penalties for Lack of Workers’ Compensation Insurance: Aside from possibly being sued for negligence, you may face other stiff consequences should you fail to purchase an insurance plan. If you don’t comply after the Employer Compliance Bureau asks you to, you could be summoned to a hearing where a judge will review the evidence and issue an order for your business to be shut down.
- Exemptions: As mentioned, businesses with less than three employees may not be required to get insurance. This can include sole proprietors without employees and members of the board with a financial interest in the company.
What Do New Mexico Workers’ Compensation Policies Cover?
Much like in other states, New Mexico insurance policies can cover the following damages suffered by an injured employee. The cause of injury may be accidents or exposure to hazardous material an employee encountered during their role.
Medical Costs
Since an injured worker may need hospitalization and other medical services, the expenses incurred could be covered. These costs can include doctors’ consultation fees, tests, treatments, and medical supplies.
Ongoing Care
Complete recovery from an injury may require additional treatments such as physical therapy. These services are often expensive for workers, but employees could be entitled to ongoing care benefits. The insurer can help cover these expenses as mandated by Workers’ Compensation laws.
Disability Benefits
Some accidents can be severe enough that they render an employee partially or totally disabled. Because of these issues, they may miss work for a period of time, need to find a new vocation, or be unable to work. In these scenarios, the worker could be entitled to disability benefits that can cover loss of income, vocational training, and more.
Missed Wages
While an employee recovers from an injury in the hospital or at home, they may not be able to report to work and earn income. They could be entitled to file a claim for lost wages. Thankfully, most insurance plans can cover this expense so your company might not have to pay for this out of pocket.
Funeral and Death Benefits
Some accidents are so grievous that they result in the death of an employee. The surviving spouse or the employee’s dependents may file a death benefits claim to receive compensation for their loved one’s death, and the insurance can cover the payment.
What Does Workers’ Compensation Insurance Not Cover?
The items listed above are classified as economic damages since they represent financial losses. These damages are typically the only ones that insurance could cover. On the other hand, Workers’ Compensation insurance may not cover non-economic damages, particularly pain and suffering.
On a similar note, an employee cannot file for compensation or receive benefits if their injury resulted from the following scenarios:
- The worker purposefully failed to follow proper operating instructions for equipment or machinery.
- The worker did not obey company safety protocols and policies.
- The injury was intentional.
- The injury resulted from the worker instigating violence.
- The worker was under the influence of controlled and prohibited substances, resulting in the injury.
- The worker’s contract had already expired before the injury.
- The accident happened off-site or outside of work hours.
Get Insured With PolicySweet
Help make sure that your company is covered against liability and claims by having Workers’ Compensation insurance. Let PolicySweet help.
We can help provide comprehensive insurance policies for businesses in New Mexico and the rest of the U.S. Some of the industries we’ve worked with include retail, personal care, cleaning, and landscaping.
Ready to get insured? Get in touch with us today and let’s discuss your needs.
Please Note: State-specific information is subject to change at any time. Always consult with your state’s official information and resources for the most accurate information.