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New Hampshire Workers’ Compensation Insurance

Is Workers’ Compensation insurance required in New Hampshire?

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:

  • Emergency treatment
  • Medical bills
  • Lost wages

Who is exempt from Workers’ Compensation insurance in New Hampshire?

The NH worker’s comp requirement does not apply to a few specific types of employees, including:2

  • Direct sellers
  • Qualified real estate brokers, agents or appraisers
  • Workers who provide services as part of a residential placement for individuals with disabilities

Workers’ Compensation owner’s coverage

For certain types of business owners, workers’ comp coverage is not mandatory.3 These types of owners include:

  • Sole-proprietors
  • Partners
  • Self-employed individuals
  • Corporate or LLC executive officers (if there are three or fewer officers and no other employees)

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.

Self-insurance for New Hampshire Workers’ Compensation

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

How does Workman’s Comp work in New Hampshire?

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.

Workers’ Comp income benefits in New Hampshire

In the event of a serious injury, workers’ compensation insurance covers certain types of disability benefits, including:

Temporary partial disability

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.

Temporary total disability

Paid to employees who are unable to return to work until they recover from their injury.

Permanent partial impairment

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.

Permanent total disability

Paid to employees who are unable to engage in gainful employment despite reaching maximum medical improvement.

Permanent impairment award

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

Employer responsibilities for Workers’ Compensation insurance

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.

New Hampshire Workers’ Compensation insurance reciprocity

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

Are there penalties for not having Workers’ Comp coverage?

Violations of New Hampshire workers’ compensation laws may result in a penalty fine, such as:

  • Failure to obtain workers’ comp coverage: Up to $2,500, plus up to $100 per employee per day for each day of non-compliance
  • Failure to file a notice of coverage: $50 per day for each day of non-compliance
  • Failure to file a First Report of Injury: Up to $2,500

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.

What are the rates for Workers’ Compensation in New Hampshire?

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:

  • The risk of injuries in your line of work
  • The location(s) where you do business
  • Your history of workers’ comp insurance claims
  • How many employees you have
  • The size of your payroll

How NEXT Insurance helps New Hampshire businesses

NEXT Insurance offers New Hampshire workers’ compensation insurance designed with small businesses and self-employed workers in mind.

We make it easy to get the coverage you need through our online services. You can get a quote, compare coverage options, purchase insurance and download your certificate of insurance from any device — all in only about 10 minutes.

Start an instant quote online today.

Need some help figuring out what coverage you need? Our team of licensed insurance advisors is standing by to assist you.

Other business insurance policies that are important in New Hampshire

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

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 (E&O insurance)

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

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.

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