New Hampshire businesses with one or more employees are required to provide workers’ compensation insurance. This coverage must extend to all employees, including part-time, temporary and immigrant workers as well as family members working as employees.1
A workers’ compensation policy provides important protections for employers and employees alike. This type of insurance prevents business owners from having to pay for unexpected costs if an employee gets hurt on the job.
For employees, New Hampshire workers’ compensation laws make sure that employees receive certain benefits if they get hurt or become ill as a result of their work. This type of insurance covers related expenses such as:
The NH worker’s comp requirement does not apply to a few specific types of employees, including:2
For certain types of business owners, workers’ comp coverage is not mandatory.3 These types of owners include:
While these business owners are not required to have workers’ compensation insurance, they may elect to have coverage if they’d like to. In some cases, a sole proprietor or partner working as a subcontractor under a general contractor may be required by the general contractor to have workers’ comp coverage.
In New Hampshire, private employers (or a homogeneous group of employers) may choose to self-insure instead of obtaining workers’ compensation insurance.
To elect this option, however, the employer or group of employers must first qualify by submitting an application to the New Hampshire Department of Labor.
Self-insurance means that the employer or group of employers takes on the full financial responsibility that would otherwise be covered by workers’ comp.
Each self-insurance application must demonstrate financial stability and propose a guarantee (usually a surety bond) to cover this risk.4
There are certain types of medical and disability benefits provided through workers’ compensation insurance. New Hampshire employees will have their medical expenses covered if a work-related injury or illness occurs.
In addition, 60% of lost wages are covered if an employee must miss more than three days of work due to the injury or illness.
For example, if you own a warehouse and an employee is injured while moving inventory from a high shelf, workers’ comp would cover the expenses of their treatment, including mileage for traveling to doctors’ appointments and prescription medications.
If their recovery extends beyond a few days of work, it would also compensate them for part of their lost wages.
In the event of a serious injury, workers’ compensation insurance covers certain types of disability benefits, including:
Paid to injured employees who can return to work but, due to their injury, are temporarily unable to earn an equivalent amount to their prior earnings.
Paid to employees who are unable to return to work until they recover from their injury.
Paid to employees who suffer a permanent disability and can return to work but will not be able to earn an equivalent amount to their prior earnings.
Paid to employees who are unable to engage in gainful employment despite reaching maximum medical improvement.
Paid to employees who suffer the permanent loss of use of a compensable body part.
If an employee dies due to a work-related injury, weekly compensation is paid to their dependents. Additionally, burial expenses up to $10,000 are covered.5
All employers who are subject to this insurance requirement must post a notice in a conspicuous workplace location that informs employees of their coverage for workmans’ comp. NH employers must also contact the Department of Labor to be assigned a Carrier Identification Number, which is used to file forms for insurance coverage.
Another important responsibility for New Hampshire employers is filing a claim for an injured employee within a timely manner. This state requires that employers record any employee injury in detail and report it to the workers’ compensation commission within five days of learning of the occurrence.
In certain cases, New Hampshire workers’ comp policies will provide coverage when an employee injury occurs out of state. If the employee is working in another state or out of the country on a temporary basis, most policies will provide statutory state coverage.
NH employers with employees who travel for work should contact their insurance carrier for more details.
If a company in another state has employees who travel for work in New Hampshire, they may have to purchase additional coverage. New Hampshire requires that all employees in the state be covered, even if they are working there on a temporary basis.
This requirement does not apply to employees from other states who are only traveling through New Hampshire and not performing any work there.6
Violations of New Hampshire workers’ compensation laws may result in a penalty fine, such as:
The state may prohibit an employer from doing business in the state until they comply with the law. If the employer purposely fails to secure the necessary coverage, they may be charged with a class B felony.
Each employer’s workers’ compensation insurance premium is determined by a number of factors. Some of the things that will affect your rates for this insurance include:
NEXT Insurance offers New Hampshire workers’ compensation insurance designed with small businesses and self-employed workers in mind.
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Need some help figuring out what coverage you need? Our team of licensed insurance advisors is standing by to assist you.
Workers’ compensation insurance is required for every New Hampshire employer. But in order to fully protect your business from all the risks you face every day, you’ll need some additional coverage.
Consider including the following types of policies in your business insurance package:
General liability insurance is essential for most businesses. It provides coverage when common mistakes or accidents in your industry occur, such as customer injury or damages to someone’s property.
Professional liability insurance gives you financial protection if you make a mistake in your work or a client makes a claim of professional negligence.
Commercial auto insurance protects you from unexpected expenses if you are involved in an accident, so it’s essential for your business if you or your employees use vehicles for work.