Workers' comp rates in New Mexico depend on your industry and team size. Find answers to common coverage questions below.
Best Workers' Comp Insurance in New Mexico
With rates starting at $6 monthly, The Hartford, NEXT and Simply Business offer the cheapest and best workers' comp insurance in New Mexico.
Compare top New Mexico workers’ comp insurance providers and find your ideal coverage.
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Updated: November 24, 2025
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Best New Mexico Workers' Comp Insurance: Fast Answers
What are the best and cheapest workers' comp insurance providers in New Mexico?
The Hartford offers the top cheap workers' compensation insurance in New Mexico. The following are the state's cheapest and best workers' comp insurance providers and their average monthly rates:
- The Hartford: $71
- NEXT: $70
- Simply Business: $72
- Coverdash: $73
- biBerk: $75
Is workers' comp insurance required in New Mexico?
New Mexico mandates workers' comp insurance for most employers with three or more employees. Sole proprietors, partnerships and businesses with fewer than three workers are generally exempt. Corporate officers and LLCs can opt out with proper documentation. Non-compliance results in fines of up to $5,000, plus daily penalties and potential criminal charges.
How much does workers' comp insurance cost in New Mexico?
Workers' compensation insurance costs in New Mexico run about $37 monthly per employee for small businesses. Your actual premium depends on your industry and payroll size. Speech therapists pay the least at roughly $3 per employee monthly, while roofers face the highest costs at approximately $423 per employee each month.
How do you get workers' comp insurance in New Mexico?
You can get workers' comp coverage in New Mexico by:
- Purchasing coverage from licensed private insurance companies operating in the state
- Obtaining policies through authorized insurance brokers who represent multiple carriers
- Becoming self-insured if your business meets New Mexico's strict financial and operational requirements
Many business owners compare quotes online or through brokers to get the best rate and compliance support.
What does New Mexico workers' comp insurance cover?
Workers' compensation in New Mexico covers:
- All medical expenses for workplace injuries and occupational illnesses
- Wage replacement benefits during recovery periods
- Permanent disability payments for lasting impairments
- Survivor benefits for families when work-related deaths occur
Best Workers' Comp Insurance Companies in New Mexico
The Hartford tops our research for workers' comp insurance in New Mexico, excelling with rock-solid financial strength and comprehensive policy options that protect businesses thoroughly. NEXT and Simply Business rank as strong second and third choices, both delivering quality coverage for small business owners.
| The Hartford | 4.63 | $71 | 2 | 3 |
| NEXT Insurance | 4.61 | $70 | 1 | 2 |
| Simply Business | 4.53 | $72 | 5 | 1 |
| Coverdash | 4.46 | $73 | 6 | 2 |
| biBERK | 4.44 | $75 | 2 | 5 |
| Nationwide | 4.43 | $81 | 2 | 4 |
| Progressive Commercial | 4.40 | $72 | 7 | 5 |
| Hiscox | 4.38 | $72 | 4 | 6 |
| Thimble | 4.35 | $71 | 8 | 5 |
| Chubb | 4.27 | $85 | 3 | 4 |
How Did We Determine These Rates and Rankings?
These rates are estimates based on MoneyGeek's analysis of small businesses with two employees across 79 major industries. Actual rates vary based on your business location, industry risk factors, claims history, coverage limits and individual insurer underwriting criteria. Contact insurers directly for personalized quotes.
Get Matched to Top Workers' Comp Insurers in New Mexico
Select your industry and state to get a customized New Mexico workers' comp quote from your top provider match.
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LEARN MORE ABOUT THE BEST BUSINESS INSURANCE IN NEW MEXICO
Explore the best business insurance providers in New Mexico through our guides:
Best New Mexico Workers’ Comp Insurance Company Reviews
Take a closer look at our top picks for workers' comp insurance in New Mexico:
The Hartford
Best Workers' Comp Insurance in New Mexico
MoneyGeek Rating
4.6/ 5
4.6/5Affordability
4.6/5Customer Experience
4.7/5Coverage Points
Average Monthly Workers' Comp Premium
$71Based on analysis of New Mexico workers' compensation ratesWorkers' Comp Claims Processing Score
4.5/5 (1st)Rating from business owner satisfaction surveyWorkers' Comp Customer Likelihood to Be Recommended to Others Score
4.5/5 (2nd)Percentage of surveyed customers who would recommend The Hartford
NEXT
Best New Mexico Workers' Comp Insurance: Runner-Up
MoneyGeek Rating
4.6/ 5
4.4/5Affordability
4.7/5Customer Experience
4.8/5Coverage Points
Average Monthly Workers' Comp Premium
$70Based on average costs across multiple business typesWorkers' Comp Digital Experience Score
4.8/5 (1st)Score based on MoneyGeek's customer satisfaction surveyWorkers' Comp Customer Likelihood to Be Recommended to Others Score
4.2/5 (5th)Percentage of customers who would recommend NEXT Insurance
Cheapest Workers' Comp Insurance Companies in New Mexico
NEXT delivers the most affordable workers' comp insurance in New Mexico at just $70 monthly or $836 annually. This saves businesses $4 each month compared to the state average, representing a solid 6% reduction from average rates.
The Hartford and Thimble round out the top three cheapest options, both charging $71 per month for coverage. These carriers provide excellent alternatives while keeping costs well below the state average.
The table below shows costs from all companies we analyzed.
| NEXT Insurance | $70 | $836 |
| The Hartford | $71 | $847 |
| Thimble | $71 | $848 |
| Simply Business | $72 | $858 |
| Progressive Commercial | $72 | $859 |
| Hiscox | $72 | $864 |
| Coverdash | $73 | $877 |
| biBERK | $75 | $904 |
| Nationwide | $81 | $977 |
| Chubb | $85 | $1,022 |
How Did We Determine These Rates?
These rates represent small businesses with two employees across 79 major industries and focus solely on workers' comp policies. Your actual premium depends on your business location, industry, employee count, claims history, coverage limits and other factors insurers consider.
Cheapest Workers' Comp in New Mexico by Industry
NEXT offers the most affordable workers' comp for dental practices at $11 monthly. NEXT dominates pricing across 36 industries, excelling in ad agency, bakery and window cleaning sectors. Thimble ranks second, leading 12 industries including automotive, wedding planning and welding businesses.
| Automotive | Thimble | $108 | $1,299 |
| Accountants | Progressive Commercial | $19 | $227 |
| Ad Agency | NEXT Insurance | $15 | $177 |
| Auto Repair | Progressive Commercial | $144 | $1,730 |
| Bakery | NEXT Insurance | $49 | $592 |
| Bounce House | NEXT Insurance | $37 | $440 |
| Barber | NEXT Insurance | $13 | $158 |
| Beauty Salon | Progressive Commercial | $14 | $162 |
| Candle | The Hartford | $37 | $444 |
| Cleaning | NEXT Insurance | $46 | $550 |
| Cannabis | biBERK | $85 | $1,022 |
| Catering | Chubb | $85 | $1,022 |
| Computer Repair | Thimble | $23 | $276 |
| Coffee Shop | Thimble | $44 | $523 |
| Computer Programming | Thimble | $26 | $308 |
| Consulting | Progressive Commercial | $28 | $340 |
| Construction | Thimble | $166 | $1,995 |
| Courier | NEXT Insurance | $211 | $2,530 |
| Contractor | The Hartford | $156 | $1,867 |
| Daycare | NEXT Insurance | $12 | $145 |
| Dog Grooming | Thimble | $59 | $713 |
| Dental | NEXT Insurance | $11 | $126 |
| DJ | NEXT Insurance | $13 | $160 |
| Ecommerce | NEXT Insurance | $20 | $244 |
| Drone | NEXT Insurance | $25 | $301 |
| Engineering | Progressive Commercial | $35 | $424 |
| Electrical | NEXT Insurance | $53 | $639 |
| Florist | Progressive Commercial | $58 | $695 |
| Excavation | Simply Business | $100 | $1,199 |
| Funeral Home | NEXT Insurance | $25 | $296 |
| Food | NEXT Insurance | $40 | $477 |
| Food Truck | NEXT Insurance | $42 | $503 |
| Gardening | Simply Business | $44 | $530 |
| Home-based | NEXT Insurance | $9 | $110 |
| Handyman | NEXT Insurance | $89 | $1,067 |
| HVAC | NEXT Insurance | $58 | $694 |
| Hospitality | The Hartford | $65 | $782 |
| Jewelry | The Hartford | $28 | $341 |
| Janitorial | Thimble | $45 | $537 |
| Junk Removal | NEXT Insurance | $136 | $1,637 |
| Lawn/Landscaping | NEXT Insurance | $34 | $414 |
| Manufacturing | Progressive Commercial | $55 | $664 |
| Lawyers | NEXT Insurance | $49 | $587 |
| Massage | The Hartford | $14 | $162 |
| Marine | NEXT Insurance | $142 | $1,707 |
| Moving | NEXT Insurance | $238 | $2,861 |
| Mortgage Broker | NEXT Insurance | $13 | $154 |
| Painting | NEXT Insurance | $131 | $1,567 |
| Nonprofit | Thimble | $29 | $350 |
| Personal Training | Simply Business | $23 | $282 |
| Party Rental | NEXT Insurance | $34 | $407 |
| Pest Control | Progressive Commercial | $66 | $797 |
| Pharmacy | NEXT Insurance | $6 | $71 |
| Pet | The Hartford | $28 | $340 |
| Physical Therapy | NEXT Insurance | $6 | $75 |
| Photography | Thimble | $16 | $191 |
| Pressure Washing | biBERK | $86 | $1,032 |
| Plumbing | The Hartford | $60 | $714 |
| Real Estate | NEXT Insurance | $28 | $340 |
| Retail | Progressive Commercial | $32 | $390 |
| Restaurant | The Hartford | $59 | $710 |
| Security | The Hartford | $49 | $583 |
| Roofing | Hiscox | $836 | $10,028 |
| Snack Bars | NEXT Insurance | $39 | $471 |
| Spa/Wellness | Progressive Commercial | $16 | $195 |
| Software | Thimble | $25 | $295 |
| Startup | NEXT Insurance | $12 | $144 |
| Speech Therapist | Progressive Commercial | $6 | $69 |
| Speech Therapist | NEXT Insurance | $6 | $69 |
| Tech/IT | Hiscox | $26 | $308 |
| Travel | NEXT Insurance | $7 | $79 |
| Transportation | Simply Business | $213 | $2,554 |
| Trucking | Simply Business | $247 | $2,961 |
| Tree Service | NEXT Insurance | $208 | $2,498 |
| Veterinary | The Hartford | $18 | $218 |
| Tutoring | NEXT Insurance | $9 | $113 |
| Wedding Planning | Thimble | $27 | $320 |
| Welding | Thimble | $110 | $1,317 |
| Wholesale | The Hartford | $37 | $445 |
| Window Cleaning | NEXT Insurance | $197 | $2,363 |
How Much Is Workers' Comp Insurance in New Mexico?
New Mexico's workers' comp insurance cost averages $74 monthly ($889 annually), slightly above the national average of $74. Costs vary by profession, with speech therapists paying just $73 annually ($36 per employee) while roofers pay $10,149 yearly ($5,075 per employee).
| Accountants | $20 | $244 |
| Ad Agency | $16 | $192 |
| Auto Repair | $153 | $1,834 |
| Automotive | $118 | $1,415 |
| Bakery | $54 | $648 |
| Barber | $14 | $170 |
| Beauty Salon | $15 | $177 |
| Bounce House | $40 | $479 |
| Candle | $40 | $483 |
| Cannabis | $84 | $1,012 |
| Catering | $74 | $891 |
| Cleaning | $49 | $593 |
| Coffee Shop | $47 | $564 |
| Computer Programming | $28 | $339 |
| Computer Repair | $24 | $293 |
| Construction | $182 | $2,183 |
| Consulting | $30 | $364 |
| Contractor | $167 | $2,003 |
| Courier | $229 | $2,747 |
| DJ | $14 | $170 |
| Daycare | $13 | $161 |
| Dental | $11 | $135 |
| Dog Grooming | $65 | $785 |
| Drone | $27 | $324 |
| Ecommerce | $22 | $265 |
| Electrical | $58 | $694 |
| Engineering | $38 | $458 |
| Excavation | $107 | $1,288 |
| Florist | $61 | $736 |
| Food | $42 | $509 |
| Food Truck | $46 | $553 |
| Funeral Home | $27 | $321 |
| Gardening | $47 | $567 |
| HVAC | $63 | $757 |
| Handyman | $94 | $1,132 |
| Home-based | $10 | $122 |
| Hospitality | $70 | $835 |
| Janitorial | $49 | $584 |
| Jewelry | $30 | $365 |
| Junk Removal | $143 | $1,720 |
| Lawn/Landscaping | $37 | $448 |
| Lawyers | $53 | $638 |
| Manufacturing | $60 | $714 |
| Marine | $152 | $1,827 |
| Massage | $15 | $175 |
| Mortgage Broker | $14 | $168 |
| Moving | $262 | $3,138 |
| Nonprofit | $32 | $383 |
| Painting | $142 | $1,705 |
| Party Rental | $37 | $446 |
| Personal Training | $25 | $302 |
| Pest Control | $71 | $855 |
| Pet | $31 | $369 |
| Pharmacy | $6 | $77 |
| Photography | $17 | $206 |
| Physical Therapy | $7 | $83 |
| Plumbing | $65 | $776 |
| Pressure Washing | $84 | $1,008 |
| Real Estate | $30 | $364 |
| Restaurant | $64 | $763 |
| Retail | $35 | $422 |
| Roofing | $846 | $10,149 |
| Security | $53 | $632 |
| Snack Bars | $43 | $519 |
| Software | $27 | $320 |
| Spa/Wellness | $18 | $211 |
| Speech Therapist | $6 | $73 |
| Startup | $13 | $156 |
| Tech/IT | $27 | $329 |
| Transportation | $229 | $2,748 |
| Travel | $7 | $86 |
| Tree Service | $223 | $2,670 |
| Trucking | $269 | $3,229 |
| Tutoring | $10 | $120 |
| Veterinary | $20 | $237 |
| Wedding Planning | $29 | $347 |
| Welding | $118 | $1,420 |
| Wholesale | $41 | $487 |
| Window Cleaning | $211 | $2,532 |
New Mexico Workers' Comp Insurance Cost Factors
These cost factors affect workers' compensation insurance rates in New Mexico:
Mandatory WCA Assessment Fee
New Mexico requires you to pay a quarterly administrative fee of $4.30 per covered employee to the Workers' Compensation Administration. You'll pay $2.30 per employee while your workers contribute $2.00 through payroll deductions. File this fee using Form WC-1 with the New Mexico Taxation and Revenue Department, separate from your insurance premium. This assessment applies to every New Mexico employer regardless of your claims history or safety record, adding baseline costs that businesses in other states don't face.
Rate Approval Through New Mexico Workers' Compensation Administration
Insurance companies must file their rates annually with the New Mexico Workers' Compensation Administration for approval. Insurers can adjust their base rates up or down by 25% using policy credits and debits. This flexibility creates significant price differences among carriers for identical coverage. Two insurers might quote you vastly different premiums based on their underwriting standards and appetite for your industry.
Recent Rate Trends
Workers' comp rates climbed 8% between 2020 and 2024, likely from limited insurer competition in the state. Rates were expected to decrease throughout 2024. These market trends affect your renewal costs even when you maintain perfect safety records. Broader economic pressures in New Mexico's workers' comp market can override your individual risk management efforts and claims performance.
Owner Payroll Requirements
New Mexico mandates fixed payroll amounts for business owners who include themselves in coverage. Sole proprietors and partners must use $54,200 for rating calculations in 2024. Corporate officers and LLC members work with a $52,000 minimum and $202,800 maximum. Your actual salary doesn't matter for premium calculations. New Mexico standardizes these figures to prevent rate manipulation. Lower-earning owners may pay premiums on income they don't actually receive, while high earners benefit from the salary cap.
Tribal Land Considerations
The New Mexico Workers' Compensation Administration can't enforce coverage requirements on tribal lands, though individual tribes may choose to require coverage. Businesses operating on tribal land might resolve workers' comp disputes through tribal courts or the state WCA. This jurisdictional uncertainty makes some insurers hesitant to write policies for reservation operations. You may face fewer carrier options or higher premiums even when your actual operations match similar businesses elsewhere in New Mexico.
Permanent Partial Disability Calculation Method
New Mexico uses a complex formula to calculate Permanent Partial Disability benefits, incorporating Specific Vocational Preparation scores, Residual Physical Capacity ratings and modifier points. This multifactor system increases administrative costs for insurers compared to states using simpler benefit schedules. The complexity extends claim durations as medical providers complete vocational assessments and capacity evaluations. Higher administrative expenses and longer claim timelines push up insurers' costs, which they build into your premium rates.
Attorney Fee Cap
New Mexico limits attorney fees to $22,500 in workers' comp cases. This cap helps insurers predict legal expenses more accurately than in states without fee limits. Predictable legal costs reduce the risk premium insurers add for potential disputed claims. You benefit from lower baseline rates even if you never face litigation, since insurers price policies using aggregate system costs across all their New Mexico clients.
How Much Workers' Comp Insurance Do I Need in New Mexico?
New Mexico law requires businesses with three or more workers to carry the required workers' compensation coverage, whether employment is permanent, temporary or transitory. Construction businesses licensed under the Construction Industries Licensing Act need coverage regardless of employee count. Your coverage amounts depend on your payroll and industry classification.
Benefits include temporary disability payments at two-thirds of average weekly wages, permanent disability benefits for up to 500 to 700 weeks depending on severity, and death benefits of $7,500 for funeral expenses plus survivor payments for up to 700 weeks. Medical coverage has no dollar limits.
New Mexico Workers' Comp Insurance Exemptions
While you're required to have coverage in New Mexico, some business categories are exempt from workers' comp requirements:
- Construction businesses: New Mexico requires workers' comp coverage for all construction companies licensed under the Construction Industries Licensing Act, even if you're a sole proprietor working alone.
- 10% ownership rule: Corporate officers and LLC members need at least 10% ownership to qualify for exemption from coverage under New Mexico law.
- Counting exempt owners: Self-employed owners, partners and executives who skip coverage still count when calculating whether your business hits the three-employee requirement.
- Household and domestic workers: Private domestic servants working in homes don't need workers' comp coverage.
- Real estate salespeople: Real estate agents working on commission are exempt from coverage requirements.
- Federal employees: Workers already covered by Federal Employees' Compensation Act or similar federal programs don't need state coverage.
- Independent contractors: Properly classified independent contractors are exempt, though New Mexico requires correct worker classification.
- Sole proprietors and partners: You can opt out of coverage with WCA Compliance Bureau approval, but you'll still count toward the three-employee threshold that triggers mandatory coverage.
- Corporate officers and LLC members: Owners with 10% or more equity can exempt themselves by filing the required form (Executive Employee Exemption for officers, Executive Employee Affirmative Action Election for LLC members) with either the WCA or your insurance carrier.
FEDERAL WORKERS' COMP PROGRAMS OVERRIDE STATE REQUIREMENTS
Federal employees working in New Mexico get benefits through separate federal programs, not the state's workers' compensation system. The Federal Employees' Compensation Act covers civilian federal workers, Peace Corps volunteers and federal jurors. Railroad employees receive protection under the Federal Employers' Liability Act, while maritime workers fall under the Longshore and Harbor Workers' Compensation Act.
New Mexico employers don't need to cover independent contractors, commission-based real estate agents or private household employees. State law doesn't classify these workers as employees, so they're excluded from workers' comp requirements.
How to Get the Best Workers' Comp Insurance in New Mexico
Getting workers' comp insurance with the right provider at competitive rates protects your business and employees while meeting state requirements.
- 1Determine if you need workers' comp coverage in New Mexico
New Mexico requires coverage once you reach three employees. Count everyone: owners who work in the business, part-time staff, seasonal workers and family members. Construction businesses need coverage from day one, even with just one employee. New Mexico uses NCCI classification codes with around 700 industry categories that determine your rates. Independent contractors, real estate agents and private household employees are exempt from coverage requirements.
- 2Gather your business information
You'll need accurate numbers for quotes: employee count, annual payroll and your NCCI classification code. Sole proprietors and partners who include themselves use a $54,200 payroll amount for 2024 rating purposes. Officers and LLC members work with a $52,000 minimum and $202,800 maximum payroll. Getting your classification code wrong leads to audit bills later or discovering your claim isn't covered when you actually file.
- 3Request workers' comp quotes from multiple carriers
Get quotes from at least three insurers to compare the cost of your coverage accurately. New Mexico insurers can offer premium discounts and underwriting credits up to 25% on eligible policies. State rates run below the national average but increased 8% since 2020. Request identical coverage limits from each carrier so you can spot the real differences in pricing.
- 4Research providers with industry experience
Look past the most affordable business insurance rates. Find insurers who understand your business risks and industry challenges. Carriers offering return-to-work programs help injured employees transition back through modified duty assignments, keeping your costs lower long-term. Construction companies benefit from insurers experienced with high-risk operations and safety requirements.
- 5Evaluate your top provider options
Research each insurer's performance to find the best business insurance match:
- Check claim processing speed and customer service ratings through New Mexico's Workers' Compensation Administration
- Confirm they provide return-to-work programs and free safety consultations
- Ask about their familiarity with New Mexico's Official Disability Guidelines, the treatment standards adopted in 2013
- Review complaint histories and financial stability ratings before committing
- 6Review and purchase your workers' compensation policy
Read your policy details carefully, paying attention to coverage limits, exclusions and renewal conditions. Choose payment structures that fit your cash flow needs. Pay-as-you-go workers' comp works particularly well for businesses with fluctuating payroll throughout the year. New Mexico also requires a separate $4.30 quarterly administrative fee per employee paid to the Taxation and Revenue Department. This fee doesn't replace your insurance premium.
- 7Reassess before annual renewal
Review your policy details before renewal. Count current employees, examine any claims filed during the year and verify your experience modification rate through NCCI. Medical and indemnity costs in New Mexico have climbed faster than national averages recently. Update your insurer about staffing changes, expanded operations or new locations so your coverage matches your actual needs.
Best New Mexico Workers' Compensation Insurance: Bottom Line
The Hartford, NEXT and Simply Business rank as New Mexico's top workers' comp insurers. Research each company's service quality, maximize discounts and select coverage that fits your budget.
About Mark Fitzpatrick
Mark Fitzpatrick, a Licensed Property and Casualty Insurance Producer, is MoneyGeek's resident Personal Finance Expert. With over five years of experience analyzing the insurance market, he conducts original research and creates tailored content for all types of buyers. His insights have been featured in publications like CNBC, NBC News and Mashable.
Fitzpatrick holds a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He's also a five-time Jeopardy champion!
He writes about economics and insurance, breaking down complex topics so people know what they're buying.
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