In New Mexico, whether a business owner or corporate officer is covered by workers' compensation — and whether they can change that — depends on the entity type and New Mexico's own rules. Getting the election right affects both your protection and your premium. Here is how inclusion and exclusion work in New Mexico, the form or filing to use, and what it means for your policy.
Who must carry workers' compensation in New Mexico?
Mandatory for any employer with 3 or more workers; any business licensed under the Construction Industries Licensing Act must carry coverage regardless of employee count. Working owners who do the work count toward the three.
Can owners and officers be included or excluded in New Mexico?
| Sole proprietor | Covered if subject; may elect out. |
|---|---|
| Partners | Covered if subject; may elect out. |
| LLC members | Members are covered (an executive employee if owning 10%+); may elect out. |
| Corporate officers | Covered; an officer who holds an executive office and owns 10%+ may elect out. An otherwise-exempt person may also elect in. |
How to make the election in New Mexico
- New Mexico Workers Comp Inclusion-Exclusion Form (Corporation)
- Official source: New Mexico WCA — Executive Employee / LLC Member affirmative election forms
Payroll counted for an included owner in New Mexico
When an owner or officer is included, premium is figured on their payroll between a minimum and maximum (effective 1/1/2027), set by NCCI.
| Included owner/officer minimum | $1,200 per week |
|---|---|
| Included owner/officer maximum | $4,800 per week |
Included executive officer $1,200–$4,800/week; covered partners, sole proprietors, and LLC members at $61,900/year. NCCI-set, changes annually.
These amounts update periodically; we confirm the current figure for your policy.
New Mexico's assigned-risk / residual market
An employer that can't secure workers' comp in the standard market can still get covered through New Mexico Workers' Compensation Assigned Risk Pool (uses NCCI rates; overseen by the Office of Superintendent of Insurance). We market your risk to voluntary carriers first and turn to the residual market only as a last resort.
Related
New Mexico business insurance · Workers' compensation coverage · New Mexico Workers' Compensation Administration.
Frequently Asked Questions
Do business owners have to carry workers' comp on themselves in New Mexico?
It depends on your entity and role. Covered if subject; may elect out. Covered; an officer who holds an executive office and owns 10%+ may elect out. An otherwise-exempt person may also elect in. Employees are always covered.
How do I include or exclude an owner from workers' comp in New Mexico?
The right form, portal, or endorsement depends on your entity type. New Mexico publishes its own form, which we complete and file with you.
What payroll is used for an included owner in New Mexico?
Included executive officer $1,200–$4,800/week; covered partners, sole proprietors, and LLC members at $61,900/year. NCCI-set, changes annually. We confirm the current figure for your policy.
Can Cory Washington & Co. handle my New Mexico workers' comp election?
Yes. We confirm which rule applies to your entity, prepare the correct form or election, coordinate it with your carrier, and keep your workers' comp aligned with the rest of your program. Request a quote or a policy review and we'll take it from there.
This page is general educational information from Cory Washington & Co. LLC about how workers' compensation owner inclusion and exclusion works in this state. It is not legal, tax, or insurance advice and is not a determination of your eligibility or obligation. Workers' compensation laws, forms, payroll limits, and residual-market programs change and depend on your entity type, ownership, and operations. Confirm the current rules and amounts with your licensed advisor at Cory Washington & Co. LLC and the state agency before making any election.