New Hampshire

Buying workers’ compensation for:

New Hampshire

State Fund: No

Insurance Coverage Requirements: Workers’ Compensation is compulsory in New Hampshire, waivers are not permitted.

Who is Required to Purchase Workers’ Compensation Coverage?

Under the New Hampshire Workers’ Compensation Law every employer who has any employees, full or part-time, is required to cover these employees with workers’ compensation insurance written by a carrier. It does not matter if they are related, such as daughter, son, husband, etc. It also does not matter if the business is a "Non-Profit" organization.

If a corporation or limited liability company (LLC) has 3 or less executive officers or LLC members and no other employees, coverage is not mandatory but may be elected pursuant to 281-A:3. Once there is a 4th executive officer or LLC members, workers’ compensation insurance must be obtained. Once coverage is in place, all persons, including all officers or LLC members, are considered employees and would automatically be covered. Up to three executive officers or LLC members may then elect to be excluded per 281-A:18a. Professional Associations are to be treated the same as corporations and LLC. 281-A:2 VII

Sole-proprietors, partners and self-employed persons are not required to carry workers’ compensation on themselves but may elect to be covered, per 281-A:3. Sole proprietors or partners operating as Sub-Contractors, without employees, under a General Contractor may be required to carry workers’ compensation coverage by the General Contractor.

Factors that Impact Coverage

  • You are a sole proprietor or partner: In New Hampshire, you are excluded from coverage but have the option to include yourself.
  • You are a corporate officer or member of an LLC: New Hampshire includes you in coverage, but you have the option to exclude up to three executive officers. Officers who actively work at a construction site cannot be exempt.

Failure to Secure Compensation

Penalty of $2,500 plus $100 per employee per day. Employer may be enjoined from doing business and injured worker may sue for damages. Employer will be guilty of a misdemeanor.

Proof of Coverage is Required

Every employer must keep posted in a conspicuous place upon the premises a notice. If any employer fails to post such notice or to keep it posted, such employer shall be guilty of a violation for each day of such failure. This section shall not apply to employers who are subject to this chapter only because they employ domestics.

Independent Contractors

Mistakenly classifying an employee as an independent contractor can result in significant fines and penalties.

View 20 factors used by the IRS and our independent contractor questionnaire to determine whether you have enough control over a worker to be an employer.

Key Resources

Other Tips

If your insured employs workers in multiple states or your insured’s employees are temporarily working out-of-state, they need to purchase insurance for all the states where their workers are located, according to each state’s laws. Call 1-800-476-2948 and let us walk you through it.

The nature of your insured’s business, number of employees being covered and past coverage and claims are all factors in how much their premium will cost.