The economy in Hobbs is mainly driven by businesses operating in the mining, quarrying, and oil & gas extraction industry. Of course, with the University of the Southwest and New Mexico Junior college located here, there are a number of other businesses that cater to the needs of the community.
Regardless of what kind of business you own, you are responsible for covering any injuries or occupational illnesses your employees may suffer while doing their jobs. Workers’ compensation insurance provides this coverage.
Independent insurance agents can shop around to help you find the best and most affordable workers’ compensation policy to cover your Hobbs business. Contact an insurance agent near you to get started.
Is Workers’ Compensation Insurance Required in Hobbs, NM?
All businesses in Hobbs are required to maintain compliance with New Mexico’s employment laws. This state mandates that all businesses with at least three employees must carry workers' compensation insurance. In the case of businesses in the construction industry, this coverage is required regardless of how many employees you have.
There are a few exceptions. It is not necessary to purchase coverage for:
- Sole proprietors
- Real estate agents
- Domestic servants
- Farm or ranch laborers
Knowingly and willingly failing to carry required workers’ compensation is against the law in this state. If caught, your company will face fines. If you continue to remain out of compliance, the state can shut your business down.
Coverage can be purchased through a commercial carrier. High-risk companies that cannot get insurance may purchase through the New Mexico state-administered fund. In some cases, businesses may obtain approval to self-insure if they can demonstrate the financial means to do so.
Learn more about the workers’ compensation requirements in New Mexico by talking to an independent insurance agent in or near Hobbs.
How Much Does Workers’ Compensation Insurance Cost in Hobbs?
From nurses at Edward Hospital to technicians at Bell Labs, there are many workers representing a wide range of industries in this city. Your workers’ compensation cost will be calculated based mainly on how likely your employees are to be hurt on the job according to the types of jobs they do.
Every occupation is assigned a classification code, and coverage rates for each of these class codes are managed by the NM Workers’ Compensation Administration (WCA). Insurance companies use these base rates when calculating costs, but they do have some leeway when it comes to offering discounts and incentives, so it is in your best interest to compare a few quotes before making a selection.
Let’s take a look at the average rates paid per every $100,000 in employee payroll for three of the top industries in Hobbs, NM:
- Mining, quarrying, oil & gas extraction: $15,200 a year
- Educational services: $1,120 a year
- Health care: $2,610 a year
Mining and construction are the two deadliest industries for workers in New Mexico. Because of this, rates for workers’ compensation insurance are very high in these sectors. For assistance getting actual, customized quotes for your particular business, contact a local independent insurance agent.
What Does Hobbs Workers’ Compensation Insurance Cover?
Workers’ compensation insurance (sometimes referred to as “workman’s comp”) is designed to cover the costs associated 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 associated with necessary medical treatment, medications, and follow-up care related to occupational illnesses and work injuries.
- Travel reimbursement: If your employees must travel at least 15 miles one way for their medical care, they may qualify to receive reimbursement for reasonable travel expenses, including mileage, tolls, meals, and even overnight accommodations when warranted.
- Short-term 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 until they can return to their normal jobs.
- Short-term total disability: If an employee needs to take more than seven consecutive days 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, they can receive compensation of two-thirds of their average weekly wages for between 500 and 700 weeks, depending on the severity of their impairment.
- 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 members by covering burial expenses up to $7,500 and providing the employee’s spouse and dependents with compensation for up to 700 weeks.
You can learn more about each of these benefits by speaking with a local independent insurance agent.
What If Your Workers’ Compensation Claim Is Denied?
Insurance companies sometimes deny workers' compensation claims. This could happen for a number of reasons, such as if your insurer suspects that the injury did not actually occur while 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 the decision can be appealed by filing a petition with the New Mexico Workers’ Compensation Administration. A mediator will be assigned by the WCA, and will make resolution recommendations. If you are unhappy with the outcome, you can petition to have the case heard by a WCA judge.
Find the Best Workers’ Compensation Insurance in Hobbs, NM
If you are looking for an ideal workers’ compensation policy to cover your Hobbs business, an independent insurance agent can help. These agents can help you obtain and compare 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 the right workers’ compensation policy for your business. Contact an insurance agent with an office in or near Hobbs, NM to start comparing customized quotes.
©2020, Consumer Agent Portal, LLC. All rights reserved.