Workers compensation insurance is an important part of running a business in New Mexico. It provides protection for employees who have been injured on the job and also ensures that you don’t have to pay for their medical bills or lost wages.
In addition to providing benefits, workers comp also protects employers from lawsuits filed by employees who were hurt while working.
Here are five facts about workers comp insurance in New Mexico to help you understand more about this policy and how it applies in the ‘Land of Enchantment’.
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1. Workers Compensation Insurance Is Required for Businesses in New Mexico
It’s important to know that each state has its own requirements when it comes to workers compensation insurance. New Mexico requires businesses to have a policy in place, which can be obtained at the click of a button online. It’s also a good idea to understand what you should look for in a policy.
2. Workers Comp Is Designed To Help Protect Employees and Employers
Employers must carry workers comp insurance, which covers medical expenses and lost wages if an employee is injured on the job. Employees must be covered by workers comp insurance, and be paid for any time they miss work because of a work-related illness or injury.
As a business owner in New Mexico, you need to be aware of these differences before determining whether or not your business requires workers comp insurance.
3. There Is No One-size-Fits-all in Workers Comp
There are no federal laws requiring businesses to have workers comp coverage. However, most states require employers who have employees working on-site or off-site (employees who commute from home to work) to purchase some form of protection for those employees in case they are injured on the job. The only way you can know if your state requires workers comp coverage is by researching local laws first.
Workers’ comp costs vary depending on where you live and how many people work for your company, among other factors like industry type and years in business within that industry sector.
4. Injuries That Are the Result of a Third Party May Not Be Covered Under Workers Comp Insurance
If your employee is injured in a car accident, or has a slip and fall outside of work hours, they may not be covered by workers comp insurance. In order to qualify for workers compensation benefits, an employee’s injury must be deemed work-related (meaning it happened because of something related to their job) by either the state’s Labor Department or private insurance company.
5. Work-related Injuries Can Be Expensive and Cause Added Stress if They’re Not Covered
Workers comp insurance can help with medical bills, lost wages, pain and suffering and other expenses related to a work injury. If one of your employees is hurt at work and sues for damages, a good liability policy will cover the costs associated with such lawsuits.
However, if an employee sues for damages and wins, they may be awarded more than what your liability policy covers. If this happens, the judgement must come out of your pocket — unless you have workers comp insurance.
Workers comp will cover judgments against you up to the limits specified in your policy.
In Summary
If you’re looking to start a business in New Mexico, it’s important to understand how workers comp insurance can protect your employees and your company. In New Mexico, this type of coverage must be provided by all businesses with four or more employees.
The workers comp system was designed to help protect injured workers from losing wages during their recovery period. It also ensures that injured employees are compensated for their medical expenses and rehabilitation costs, as well as other costs related to work-related injuries.
