New Mexico handyman insurance and license guide

Jun 17, 2023 · 7 minutes to read

The future of a handyman’s career is bright. According to the U.S. Bureau of Labor Statistics (BLS), employment of general maintenance workers and repair workers will increase by 5% between 2021 and 2031. It is estimated that 160,100 handyman positions could be created per year.

The path to becoming a handyperson in New Mexico depends on what type of work you wish to do. You may be wondering what kind of work a handyman can legally do. This state doesn’t require a handyman’s license. But New Mexico requires a handyman’s certificate for anyone earning up to $7200 per year. If you earn more, you are required to get a New Mexico Contractor License.

This guide will cover the following topics:

Do handymen in New Mexico need a license?

New Mexico does not issue handyman licensing for this occupation.

New Mexico requires a handyman certification if you earn up to $7,200 per annum. You must obtain a New Mexico contractor’s license if your annual income exceeds this amount.

What can a handyman without a license do?

A handyman’s certificate in New Mexico allows you to do minor repairs and maintenance. This includes the following:

  • Repairs that are minor or insignificant to buildings or structures (no structural repair)
  • Repair holes in the interior wall
  • Repair damaged windows and doors without replacement
  • Repair portions of porches or decks (no structural replacement)
  • Repair concrete or wooden steps/stairs (no replacement required)
  • Repair siding, but excludes any stucco work

They are not allowed to work on plumbing, electrical wiring, stucco, roofing, or gas-fitting. They cannot build or remodel new buildings or structures.

In New Mexico, an authorized handyman can only work on a single project at a given time. He cannot hire employees or use subcontractors. They may also not be a subcontractor for larger projects.

The certificate has a limit of $7,200 earnings per year, which is ideal for handymen who do projects on the side or part-time. You can earn more money or do major renovations and repairs by obtaining a contractor’s license through the New Mexico Regulation and Licensing Department.

How to obtain a handyman license in New Mexico?

There is no handyman license in New Mexico, but a handyman certification must be obtained if you intend to do minor repairs or maintenance.

You must register your business at the Taxation and Revenue Department before you can get a handyperson’s certificate. You need to fill out the handyman application and submit it. The application must include a $15 non-refundable application fee and be notarized.

You will receive a handyman certification once your application is processed and approved. This card must be presented to every client before you begin a job.

Your certificate must be renewed annually. The New Mexico Regulation and Licensing Department will send you a renewal notice with instructions.

New Mexico contractor license requirements

If you are a handyman, then you must obtain a contractor’s license if:

  • You earn more than $7,200 per annum.
  • You work on multiple projects at once.
  • You are involved in the construction, modification, repair, installation, or demolition of structures and buildings.

Follow these steps to apply for a New Mexico contractor’s license:

  1. Verify your classification
  2. Become a qualifying party
  3. Take the license exam
  4. Submit your contractor’s license application

Verify your classification

Before you begin the application process, it is important to verify that your work falls under the right classification. Complete the Classification Determination Form and send it to PSI. This is New Mexico’s construction licensing agency.

Become a qualifying party

Only qualified parties may apply to be a New Mexico contractor. You will need to submit both a Qualifying Party Application and an Affidavit of Work Experience, signed and notarized.

You can apply for one or more of the following contractors’ licenses, depending on how many years you have worked and on what type of project you intend to work:

  • Two years experience (4,000 hours): Residential Building Contractor (GB-2).
  • Four years experience (8,000 hours): General Building Contractor (GB-98).

Experience must be from the past 10 years. Experience includes education/technical and hands-on training.

Take the license exam

You must achieve a score of 75% on each exam to pass.

Submit your contractor’s license application

Complete the Contractor License Application and include the following documents:

  • Copy of your qualification party certificate, or copy of the exam results
  • A $10,000 bond as proof of financial responsibility
  • A current New Mexico tax identification number
  • If applicable, proof of registration at the New Mexico Secretary of State
  • A self-addressed, stamped envelope
  • $30 Contractor License Application Fee and $6 Contractor License Certificate Fee
  • License fee: $150 (GB-2), or $300 (GB-98)

New Mexico contractor license renewal

New Mexico contractors must renew their licenses every three years. Licenses expire at the end of the month in which they were issued. For renewal, you must submit a notarized application, a check for the license renewal fee, and an envelope with your address.

What type of insurance is required for a handyman in New Mexico

If you are a licensed or certified contractor in New Mexico, then you need to have the appropriate coverage. This type of work is best protected by the following insurance types.

Workers Compensation Insurance

Workers’ compensation insurance protects your business from workplace injuries. This helps pay for medical costs, lost wages, and benefits in the event of an injury on the job.

The Construction Industries Division requires that all employers purchase workers’ compensation insurance, regardless of the number of employees. Failure to maintain coverage can result in a contractor’s license being suspended or revoked.

General Liability Insurance

Most handymen or contractors will ask for proof of General Liability Insurance. This insurance helps cover accidents at work that cause damage to another’s property, or injury to someone who is not an employee.

Insurance for Tools and Equipment

Protect your tools and equipment with Tools and Equipment Insurance. This type of insurance helps cover the cost of repairs or replacements when items are damaged or stolen.

Commercial Auto insurance

You’ll need Commercial Auto Insurance if you drive a vehicle for work to various job sites. This will help you pay for costs related to accidents, including towing, repair, and rental reimbursement.

Commercial Property Insurance

Insurance for commercial property covers damage and vandalism caused to the property you own or rent. This insurance also helps cover inventory and equipment that are stored at this location.

New Mexico Handymen can benefit from BizInsure

BizInsure can help you find the best small business insurance for a handyman, contractor, or other small business. Our customized insurance packages will help you protect your business, and if needed, meet New Mexico’s licensing requirement for contractors.

We have helped thousands of small businesses get customized insurance packages that meet their specific needs.

Get a quote today.

*As with any insurance, coverage will be subject to the terms, conditions and exclusions contained in the policy wording. The information contained on this web page is general only and should not be relied upon as advice.
This information is a general guide only and does not take into account your objectives, financial situation or needs. Always check with your local licensing board when getting or renewing your electrician’s license to ensure you are meeting their current licensing requirements.

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