The economy in Carlsbad revolves mainly around mineral extraction, particularly in the mining of nitrogen, phosphorus, and potash. Tourism also feeds the local economy, since many people come to visit the national parks and forests in the area. Whatever the industry, employees sometimes get injured on the job. Workers’ compensation insurance is designed to cover the associated costs.
If you are among Carlsbad’s employers, an independent insurance agent can help you find the best and most affordable workers’ compensation policy to cover your business. Contact an insurance agent near you to learn more.
Is Workers’ Compensation Insurance Required in Carlsbad, NM?
Most Carlsbad businesses need to have worker’s compensation insurance. The state of New Mexico mandates that if you have at least three employees, you must carry workers' compensation insurance. If you have a construction business, you must cover all your workers with this insurance, even if you have fewer than three employees.
There are a few exceptions. You are not required to purchase coverage for sole proprietors, executives who have a financial interest in the business, domestic servants, real estate agents, or farm and ranch laborers. If in doubt about whether you need to buy a policy, you can consult a local independent insurance agent.
Workers’ compensation insurance can be purchased through a commercial provider. High-risk businesses may need to purchase coverage through New Mexico’s state-administered fund. Alternatively, your company may opt to self-insure, though you will need to apply for approval and demonstrate that you have the financial means to do so.
Knowingly and willingly failing to carry workers’ compensation is illegal and can result in your company being penalized with fines. Continued failure to get coverage can lead to your company being shut down by the state. Contact an independent insurance agent for help getting coverage for your Carlsbad business.
How Much Does Workers’ Compensation Insurance Cost in Carlsbad?
Workers’ compensation costs are calculated based on how likely your employees are to be hurt on the job according to the types of jobs they do. Therefore, rates can vary significantly from one industry to another.
Every occupation is assigned a classification code, and coverage rates for each of these class codes are regulated by the New Mexico Workers’ Compensation Administration (WCA). Insurance companies use these designated base rates when calculating costs. Let’s take a look at the average rates paid per every $100,000 in employee payroll for three of the top industries in Carlsbad, NM:
- Health care: $2,610 a year
- Accommodation & food services: $2,380 a year
- Mining, quarrying, oil & gas extraction: $15,200 a year
While workers at hospitals, hotels, and restaurants may suffer injuries like back strains and burns, these risks pale in comparison to the hazards faced by miners. Mining jobs often require the use of explosives, heavy lifting, and the risk of contracting an occupational illness after inhaling dangerous dust particles. That is why the cost to insure these workers is so much higher.
Of course, the only way to know how much a workers’ compensation policy will cost for your business is to request customized quotes. A local independent insurance agent can help.
What Does Carlsbad Workers’ Compensation Insurance Cover?
Workers’ compensation insurance is designed to cover the various costs associate with on-the-job injuries and occupational illnesses. You can expect your policy to cover the following:
- Medical treatment: Workers’ compensation will cover all costs for necessary medical treatment related to occupational illnesses and injuries. This includes any associated follow-up care, medications, physical therapy, and other treatments. Employees should pay nothing out of pocket.
- Travel reimbursement: If your workers must travel at least 15 miles one way to receive the medical attention they need, workers’ compensation can reimburse them for their travel costs, including meals, tolls, public transportation fares, and overnight stays if warranted.
- Temporary partial disability: If an employee is cleared to return to work but with temporary limitations or restrictions, workers’ compensation can cover a portion of the difference in pay they are receiving until they can return to their normal jobs.
- Temporary total disability: If an employee needs to take more than a week off work to recuperate from a work-related injury, they will be able to collect a weekly benefit of two-thirds of their average weekly pay until they can return to work.
- Permanent partial disability: If an employee suffers a permanent work injury that enables them to continue working but in a limited capacity or a different type of job, they can receive compensation of two-thirds of their average weekly wage for a number of weeks that is determined according to the severity of their impairment, usually between 500 and 700 weeks.
- Permanent total disability: If a work-related injury is so severe that the injured worker will be unable to ever return to work, workers’ compensation insurance can provide them with a weekly benefit of two-thirds of their average wage for the rest of their life.
- Survivor benefits: If a work-related injury or illness leads to a fatality within two years, workers’ compensation can ease the financial burden on surviving family member by covering burial expenses up to $7,500 and providing the employee’s spouse and dependents with compensation of two-thirds of the employee's average weekly wages for up to 700 weeks.
You can learn more about workers’ compensation insurance by speaking with an independent insurance agent in Carlsbad.
What If Your Workers’ Compensation Claim Is Denied?
Insurance companies sometimes deny workers' compensation claims. This might happen for a number of reasons, such as if the insurer suspects that the injury did not actually occur while the employee was on the job, that the injury was intentionally self-inflicted, or that the injured employee was under the influence of drugs or alcohol at the time of the accident.
If you believe that your workers’ compensation claim was unjustly denied, you can appeal the decision by filing a petition with the New Mexico Workers’ Compensation Administration. The WCA will assign a mediator who can make resolution suggestions. If these recommendations are not satisfactory, you can petition to have the case heard by a WCA judge.
Find the Best Workers’ Compensation Insurance in Carlsbad, NM
If you are looking for the right workers’ compensation policy to cover your Carlsbad business, an independent insurance agent can help. These agents can help you obtain and review rates from insurance providers that specialize in covering businesses in your industry. That way, you can be sure you are getting your coverage at a competitive price.
Discover how easy it can be to find an ideal workers’ compensation policy for your business. Contact an insurance agent in or near Carlsbad, NM to start comparing customized quotes.
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