Protect Your Carpenters with Workers' Compensation in New Mexico
Part of our guide to carpenters insurance in New Mexico.
Workers' Compensation Insurance for carpenters in New Mexico covers medical bills and lost wages when employees are injured on the job, but it does not cover general liability or tool damage. In New Mexico, workers' compensation is generally required once you have 3 or more employees. Carpenters with employees must carry workers' compensation to work with general contractors and commercial clients. General Liability and Tools & Equipment insurance are also common, but they do not replace Workers' Compensation. Carpenters in Albuquerque, Las Cruces, and Santa Fe must understand this coverage.
Workers' Compensation cost for carpenters in New Mexico
Illustrative monthly workers comp estimate for a small carpenter operation in New Mexico. Actual pricing depends on revenue, payroll, coverage limits, claims history, and carrier. Get a personalized quote to see your real price.
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What Workers' Compensation Covers for Carpenters in New Mexico
Workers' Compensation Insurance for carpenters in New Mexico pays for medical bills and lost wages when employees are injured on the job. For example, if an employee falls from a ladder and breaks their leg, Workers' Compensation covers the medical bills and lost wages. However, it does not cover general liability or tool damage. If a carpenter damages a client's property, they would need General Liability insurance to cover the costs. Workers' Compensation also does not cover damage to tools and equipment, which would be covered under a separate policy.
Do Carpenters in New Mexico Need Workers' Compensation?
In New Mexico, workers' compensation is generally required once you have 3 or more employees. This means that if you have a small carpentry business with a few employees, you will need to carry Workers' Compensation insurance. Without it, you risk facing fines and penalties, as well as being personally liable for medical bills and lost wages if an employee is injured on the job. Carpenters who work solo or have fewer than 3 employees may not be required to carry Workers' Compensation, but it is still highly recommended to protect themselves and their business.
A Real Workers' Compensation Claim a Carpenter Could Face
Juan, the owner of a carpentry business in Albuquerque, had an employee named Alex who was injured on the job when a beam fell on his foot. Alex required surgery and was unable to work for several weeks. Workers' Compensation covered the medical bills, which totaled $10,000, and also paid Alex's lost wages, which were $5,000. Without Workers' Compensation, Juan would have had to pay these costs out of pocket, which could have put his business at risk. Instead, he was able to focus on getting Alex back to work and keeping his business running smoothly.
What Workers' Compensation Costs for Carpenters in New Mexico
The cost of Workers' Compensation insurance for carpenters in New Mexico varies based on several factors, including revenue, payroll, coverage limits, deductible, and claims history. Estimated premiums range from $55 to $215 per month. Carpenters who work in high-risk areas, such as those prone to wildfires, may face higher premiums. To lower their premium, carpenters can take steps to reduce their risk, such as implementing safety protocols and providing training to their employees. They can also shop around to compare rates from different insurance providers.
How to Get Workers' Compensation in New Mexico
To get Workers' Compensation insurance in New Mexico, carpenters should start by gathering information about their business, including their revenue, payroll, and employee roster. They should also determine what coverage limits and deductible they need. Carpenters in cities like Las Cruces and Rio Rancho can work with a local insurance agent to compare rates and find the best policy for their business. Bundling Workers' Compensation with other core policies, such as General Liability and Tools & Equipment insurance, can often lower the total cost. Get your quote today to protect your carpentry business.
Frequently asked questions
Will my Workers' Compensation premium jump after one claim?＋
Yes, it may increase. The amount of the increase depends on the severity of the claim and the insurance provider's policies. For example, if the claim is minor and the employee returns to work quickly, the premium increase may be small. However, if the claim is severe and the employee requires extensive medical treatment, the premium increase may be larger. Carpenters can work with their insurance agent to understand how claims will affect their premium and to find ways to reduce their risk and keep their premiums low.
Can I get a COI same-day for a client?＋
Yes, many insurance providers offer same-day certificates of insurance. Carpenters can work with their insurance agent to obtain a COI quickly, often within a few hours. This can be especially helpful for carpenters who need to provide proof of insurance to clients or general contractors on short notice. Some insurance providers may also offer online portals where carpenters can access their COI and other policy documents at any time.
Does a sole proprietor need Workers' Compensation?＋
No, sole proprietors are not required to carry Workers' Compensation in New Mexico. However, they may still want to consider purchasing a policy to protect themselves and their business in case of an accident. Sole proprietors who work in high-risk industries, such as carpentry, may be more likely to be injured on the job and may benefit from having Workers' Compensation insurance. They can work with an insurance agent to determine if a policy is right for them and to find a provider that offers affordable rates.
What is not covered by Workers' Compensation?＋
Workers' Compensation does not cover general liability, tool damage, or damage to property. For example, if a carpenter damages a client's property, they would need General Liability insurance to cover the costs. If a carpenter's tools are stolen or damaged, they would need a separate policy, such as Tools & Equipment insurance, to cover the loss. Carpenters should work with their insurance agent to understand what is and is not covered by their Workers' Compensation policy and to find other policies that can help fill any gaps in coverage.
Can I cancel my Workers' Compensation policy at any time?＋
Yes, but it may depend on the terms of the policy. Carpenters should review their policy carefully before canceling to understand any potential penalties or fees. They should also consider the risks of not having Workers' Compensation insurance, including being personally liable for medical bills and lost wages if an employee is injured on the job. Carpenters who cancel their policy may also face difficulties when trying to obtain a new policy in the future, especially if they have a history of claims. It is generally recommended that carpenters work with their insurance agent to find a policy that meets their needs and to avoid canceling their policy unless absolutely necessary.
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Other coverages carpenters in New Mexico should know
This article is for general educational purposes and is not insurance or legal advice. Coverage requirements and pricing in New Mexico change over time and vary by business. Verify current rules with the New Mexico Department of Insurance and a licensed agent before purchasing a policy.