While it is mainly an agricultural and ranching community, Clovis is home to hundreds of businesses ranging from medical care facilities to retail shops. Whether you own a large company like the Southwest Cheese Company or a small one like a corner diner, workers’ compensation insurance can protect your business from liability lawsuits if your employees are injured on the job.
Local independent insurance agents can help you find the best and most affordable workers’ compensation insurance policy to cover your business in Clovis. Contact an insurance agent near you to learn more.
Is Workers’ Compensation Insurance Required in Clovis, NM?
Businesses in Clovis need to be in compliance with New Mexico state employment laws. In this state, all businesses that employ at least three people are required to cover their employees with workers’ compensation insurance. For construction companies, all employees must be covered, even if the business has fewer than three workers.
There are a few exceptions. In this state, it is not necessary to purchase coverage for sole proprietors, domestic workers, farm and ranch laborers, or real estate agents.
If you fail to carry workers’ compensation for your employees, you can be penalized with fines. Continued failure can result in your business being shut down by the state. Make sure you have the coverage you need by talking to a local independent insurance agent.
How Much Does Workers’ Compensation Insurance Cost in Clovis, NM?
The cost of workers’ compensation insurance is based mainly on the types of jobs your workers do. Every job is assigned a designated classification code, and rates for each class code are regulated by the New Mexico Workers’ Compensation Administration (WCA). The more likely it is that a worker will suffer a serious injury, the higher the cost for coverage will be.
Insurance providers are required to use the state’s assigned rates as guidelines when assessing costs for coverage. Factors such as experience modifiers, claims histories, worker safety records, and incentives can influence rates and make them higher or lower. The following are the average rates paid per every $100,000 in employee payroll for three of the top industries in Clovis, NM:
- Educational services: $1,120 a year
- Health care: $2,610 a year
- Accommodation & food services: $2,380 a year
A nurse at Plains Regional Medical Center has a much higher risk of suffering a work-related injury than an adjunct professor at Clovis Community College. That is why average workers’ compensation rates are higher in the healthcare industry than in the educational services industry. More hazardous jobs like construction and roofing will cost far more to cover.
Of course, these are just averages. There is a wide range of jobs under each industry umbrella and costs can vary accordingly. Talk to an independent insurance agent in Clovis to find out how much workers’ compensation insurance will cost for your particular business.
Clovis Workers’ Compensation Covers the Cost of Medical Treatment
Workers’ compensation insurance ensures that if employees suffer work-related injuries or occupational illnesses, they will be able to receive appropriate care with no out-of-pocket costs. This insurance covers the cost of medical care, follow up visits, medications, physical therapy and other associated costs as needed.
If your employee must travel more than 15 miles one way to obtain necessary medical care, workers’ compensation can reimburse them for their travel costs. This can cover miles driven, tolls paid, fares for transportation, up to $30 a day for meals on the road, and up to $85 a night for hotel accommodations, if appropriate and necessary.
Workers’ Compensation Insurance Provides Disability Coverage for Clovis Employees
If an employee needs to take more than seven consecutive days off to recuperate from a job-related injury, workers’ compensation insurance can ease their financial burden by offering disability coverage. Through this coverage, disabled employees can receive a weekly benefit of two-thirds of their average weekly wages.
Sometimes, treating physicians will release injured employees to return to work, but only in a light-duty capacity. If so, employees must comply or risk losing their benefits. If a recuperating employee is earning less money than before, because the light-duty job pays less or they are working fewer hours, workers’ compensation insurance can help to bridge the difference in income.
If a work injury leaves an employee permanently disabled or disfigured, they can receive compensation in an amount based on their previous earnings. The number of weeks the employee may collect this benefit depends on the type of injury sustained and the degree of impairment the injury caused. A fully disabled employee can receive benefits for life.
Workers' Compensation Covers Fatal Work Injuries in Clovis
Unfortunately, workplace injuries are sometimes so severe that they result in fatalities. Workers’ compensation insurance can help surviving family members manage the financial difficulties of such a loss by providing them with death benefits, or survivor benefits.
These benefits include up to $7,500 in burial costs and up to 700 weeks’ worth of monetary payment to the employee’s spouse and dependents. The payments will be two-thirds of the deceased employee’s average weekly wages in the year prior to the accident, but cannot exceed the yearly maximum benefit, which is determined annually by the NM Department of Labor.
What Can Cause a Workers’ Compensation Claim to Be Denied?
There are a number of reasons why workers’ compensation insurance companies may refuse to honor a claim. Claims can be denied if they believe that:
- The injured worker was not officially an employee of your company at the time of the accident.
- The injury occurred outside the workplace or while the worker was doing something other than their job.
- The injured employee was intoxicated at the time of the accident.
- The injured employee failed to use provided safety equipment or follow established safety protocols.
- The injury occurred while the employee was committing a crime.
- The injury was purposely self-inflicted.
If you feel that a workers’ compensation claim was unjustly denied, you can file an appeal through the New Mexico Workers’ Compensation Administration. The WCA will assign a mediator who will review the facts and make recommendations. If you are not satisfied with the suggested resolution, you can file a petition to have the case heard by a WCA judge.
Why Work with an Independent Insurance Agent in Clovis, NM?
If you are looking for an ideal workers’ compensation insurance policy to cover your Clovis employees, an independent agent can help. These agents can match you up with an insurance provider that specializes in covering businesses like yours. Your agent can also help you compare rates so that you can be sure your premiums are competitively priced.
If you are ready to find the best workers’ compensation policy for your business, you can get started by contacting an independent insurance agent near you.
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