Contractors Insurance in New Mexico

Similar to California and Hawaii, contractors who wish to operate in New Mexico must be licensed by the state. In the state of New Mexico, all regulating and licensing is administered by the New Mexico Regulation and Licensing Department. Contractors can learn more about New Mexico license requirements and how to obtain the proper licensing by visiting the New Mexico E-Services for Contractor Licensing.

New Mexico appears to be just as concerned about employees in the state as they are about consumer protection because all businesses working in construction must carry workers’ compensation insurance regardless of the number of employees. However, if your business is not construction related, you are only required to carry workers’ comp if you have three or more employees.

New Mexico allows businesses in their state to purchase workers’ compensation insurance from a commercial insurance provider or from the state-administered workers’ comp fund.

Protect Your Business with Contractors Insurance from Fairbanks Insurance

All contractors, subcontractors, and specialty contractors are exposed to risks while traveling to a jobsite or working at a jobsite. These risks are typically a result of legal actions brought against your business from a third-party but can also result from an employee getting injured or becoming ill as result of work-related circumstances.

Risks that contractors face everyday can be transferred to a highly-rated commercial insurance company using Fairbanks Insurance Brokers – a commercial brokerage firm specializing in the construction industry.

Here is What We Recommend:

General Liability

As your commercial insurance package foundation, general liability insurance provides a package of valuable coverages that every business can rely on:

  • Business liability resulting from claims for bodily injury or property damage from third parties.
  • Contractual Liability – often times contractors enter in contractual agreements with other contractors and must indemnify their business.
  • Products Completed Operations – If your business manufactures of installs products for customers, you could be held liable for actions that result from products and their installation.
  • Legal Costs – Every legal action filed against your company must be responded to and defended. Here is where your general liability insurance is invaluable.

Workers' Comp

New Mexico is designated as an NCCI State when it comes to workers’ compensation. This means that classes and rates are set by the National Council on Compensation Insurance. The state has also setup a state administered workers’ compensation form to help businesses who have difficulty buying coverage from a private insurer. The state of New Mexico requires all contractors to carry workers’ compensation and enforces substantial fines for businesses who fail to comply with state rules.

Commercial Auto

New Mexico contractors that use vehicles and trailers for commercial purposes should only depend on commercial auto insurance to cover their liability for injuries or property damage and repair or replace their vehicles in the event of an accident or theft. Contractors who make the mistake of relying on personal auto insurance will likely find that coverage will not be available if the vehicle is regularly used for commercial purposes.

Tool Coverage

Your tools and equipment are not covered under your business property or commercial auto policy while in transport, in storage, or at the jobsite. Fairbanks Insurance Brokers provides affordable tool and equipment coverage using Inland Marine Insurance coverage from many highly-rated commercial insurers.

Surety Bonds

Like many other states, New Mexico requires contractors to post a surety bond that protects the state before a license will be issued. Also, many large customers and government agencies will require a bid bond before they will even review your company’s bid for a project. Fairbanks Insurance Brokers has access to multiple bonding companies and can deliver any bond required at affordable rates.

Fairbanks Insurance Brokers is a leader in providing contractors insurance and is dedicated to providing Contractors and Builders the finest insurance protection at the lowest rates throughout the construction community.

With savings up to 65% on General Liability, Workers’ Compensation, Commercial Auto and Bonds, you can count on us to do the heavy lifting and provide you the most competitive quote that includes all the discounts for which you qualify.


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