Short answer. Businesses with three or more workers. Exempted officers still count toward the three. Construction: Coverage is required for every employee doing construction work, whatever the headcount.
At a glance
- Who must carry it
- Businesses with three or more workers. Exempted officers still count toward the three.
- Construction
- Coverage is required for every employee doing construction work, whatever the headcount.
- Agriculture
- Agricultural employers are now required to carry it.
- Domestic and real estate
- Coverage isn't required for domestic servants or real estate salespeople.
- Owners and officers
- Sole proprietors and executive employees, including corporate officers who own 10% or more of the stock and LLC executives, can elect not to accept the Act; sole proprietor exemptions need approval.
- Independent contractors
- Employers don't have to insure independent contractors; status depends on the facts of each case.
- Self-insurance
- Businesses can apply to the WCA to self-insure if they meet financial requirements.
- Going without
- Penalties range from fines to injunctions against the business; no amounts are given.
- Check a policy
- Call the WCA Employer Compliance Bureau at (505) 841-6851.
- Agency
- New Mexico Workers' Compensation Administration
In the agency's words
The rule
"All businesses that employ three or more workers are required to have coverage."
Construction
"New Mexico workers' compensation law requires coverage for all employees engaged in construction activities."
Agriculture
"Agricultural employers are now required to carry workers' compensation insurance."
Domestic and real estate
"Coverage is not required for domestic servants or real estate salespeople."
Owners
"can elect not to accept the provisions of the Workers' Compensation Act."
Contractors
"Employers are exempt from providing workers' compensation insurance for independent contractors."
Going without
"ranging in severity from monetary fines to injunctions against the business"
Three example businesses
What the stated rule says for three common setups:
- 2 employees, most businesses (not construction), llc: Not required by the headcount rule. See why
- 4 employees, construction, corporation: Required. See why
- 6 employees, most businesses (not construction), sole proprietor: Required. See why
Your own numbers: open the checker for New Mexico.
Not stated on the pages we read: a required workplace notice.
Official sources
- Determining Insurance Coverage (New Mexico Workers' Compensation Administration) (checked November 2026)
General information, not legal or insurance advice; we are not lawyers or insurance agents. Rules as published on the pages above, checked November 2026. We don't recommend or sell any insurer; the agency or a licensed agent can say how a rule applies to your business.
Common questions
Who has to carry workers' comp in New Mexico?
Businesses with three or more workers. Exempted officers still count toward the three. The agency puts it as "All businesses that employ three or more workers are required to have coverage."
Is the rule different for construction in New Mexico?
Yes. Coverage is required for every employee doing construction work, whatever the headcount.
Do owners and officers need coverage in New Mexico?
Sole proprietors and executive employees, including corporate officers who own 10% or more of the stock and LLC executives, can elect not to accept the Act; sole proprietor exemptions need approval.
What about independent contractors in New Mexico?
Employers don't have to insure independent contractors; status depends on the facts of each case.
What happens to a New Mexico employer with no coverage?
Penalties range from fines to injunctions against the business; no amounts are given.
Can an employer self-insure in New Mexico?
Businesses can apply to the WCA to self-insure if they meet financial requirements.
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