Insurance in New Mexico

New Mexico does not mandate commercial general liability coverage as a condition of CID contractor license issuance. The license requirement is a surety bond under NMSA 60-13-13 (the license bond protects the public if you fail to perform or pay), not a liability policy. That is a floor, not a ceiling. General contractors and commercial owners will almost always require you to carry CGL with specific limits and additional-insured endorsements before you can step on site. Most New Mexico trades operators carry $1,000,000 per-occurrence / $2,000,000 aggregate CGL at a minimum, with higher limits for commercial work. Workers' compensation. New Mexico makes workers' compensation mandatory for employers with three or more employees under NMSA 52-1-2 (Workers' Compensation Act). Construction-industry employers are covered at any employee count; the three-employee threshold does not exempt construction. The New Mexico Workers' Compensation Administration (WCA) administers the system. Sole proprietors with no employees are not required to cover themselves but may elect coverage. Source: NM WCA (https://workerscomp.nm.gov/). Other coverages trades operators typically carry in New Mexico: - Commercial auto for trucks and vans. Personal auto policies carve out business use. New Mexico's minimum financial responsibility limits are low. Commercial buyers expect well above the state minimum. - Hired and non-owned auto for employees driving their own vehicles on company errands. - Inland marine (contractor's equipment) for tools, equipment, and materials in transit or on site. - Pollution liability for refrigerants, solvents, and fuel handling. Material for HVAC, mechanical, and underground trades. - Umbrella for $1M to $2M over the underlying CGL and auto layers, commonly required by commercial GCs. - Builder's risk, on a per-project basis, for new construction and major remodel work. Shop the market annually. New Mexico trade associations (ABC New Mexico, AGC New Mexico Building Branch, PHCC New Mexico) run group programs that sometimes price below street rates. Whatever you buy, keep the CID license bond current and the WCA-filed workers' comp policy active. Lapses on either are license-impacting.