New Mexico Farmers Singing Workers Comp Blues

New Mexico recently remove the exemption for ranchers and farmers in the state's Workers Compensation Act. And the cost of Workers Compensation insurance is now proving to be significantly more than some of those agricultural employers had anticipated.

Those in the agricultural business are, perhaps predictably, suggesting that these increase costs spell the end of the agricultural business in New Mexico. Somehow, that seems as if it might be a little exaggerated. Still, as so many other businesses have learned, the cost of insuring against your Workers Compensation liability is non-trivial. But most other kinds of business enterprise have figured out how to handle this cost of doing business, even though it can be painful (or worse).

Those farmers who are only now being introduced to the enervating drain on revenue that Workers Comp coverage can represent should learn from the experiences of other industries who have had to wrestle with this issue for many years: "Trust, but verify". That is, double check those insurance premiums an audits, as errors by the insurers and rating bureaus can be common and costly.