If you're starting a business in New Hampshire or already running one, here's something you need to know right away: the Granite State doesn't mess around when it comes to workers' compensation insurance. Unlike many states that give small businesses a pass until they hit a certain number of employees, New Hampshire requires coverage from day one. That first hire? You need insurance before they start work.
This guide breaks down everything you need to know about New Hampshire's workers' compensation requirements, from who needs coverage to what happens if you don't have it. We'll cover the exemptions, the penalties, and the practical steps to stay compliant.
Who Needs Workers' Compensation in New Hampshire?
Under New Hampshire Workers' Compensation Law RSA 281-A:5, the answer is straightforward: if you have any employees—even one—you need coverage. This applies whether they're full-time, part-time, seasonal, or even family members. Yes, that means if you hire your spouse, daughter, or son to work in your business, they need to be covered too.
It doesn't matter if your business is a for-profit company or a nonprofit organization. The law applies equally. The primary responsibility rests on you as the employer, and you must obtain coverage before hiring anyone. This is a critical point: you can't bring someone on board and then scramble to get insurance afterward.
New Hampshire takes a harder line than many states. While some states exempt businesses with fewer than three or five employees, the Granite State eliminated that loophole. The reasoning is simple: workplace injuries can happen to anyone, regardless of company size, and injured workers deserve protection.
Important Exemptions You Should Know About
While the general rule is strict, there are some specific situations where coverage isn't mandatory—though it's often still a smart idea.
Sole proprietors, partners, and self-employed individuals don't have to cover themselves under RSA 281-A:3. If you're running a one-person show, you're not required to buy workers' comp for yourself. However, you can elect to be covered if you want that protection. Many business owners choose this option because medical bills from a serious injury can be financially devastating.
For corporations and LLCs, there's a special rule: if your company has three or fewer executive officers or LLC members and no other employees, coverage is optional. You can choose to be covered, but you don't have to be. The moment you add a fourth executive officer or LLC member, though, coverage becomes mandatory.
Here's a critical exception to that exemption: if you're in construction and actively working on-site, the exemption doesn't apply. Construction work carries higher injury risks, so New Hampshire requires coverage for corporate officers and LLC members who are doing hands-on work at construction sites, regardless of company size.
Independent contractors typically aren't covered under your workers' compensation policy. However, to qualify as an independent contractor under RSA 281-A:2,VI, someone must meet specific criteria: they need their own federal employer identification number, and they must have control over when and how they perform their work. If someone doesn't meet these requirements, the state may classify them as an employee, which means you'd be on the hook for coverage.
What Happens If You Don't Have Coverage?
New Hampshire doesn't play games with non-compliance. The penalties are designed to be steep enough that skipping insurance simply isn't worth the risk.
If you're caught operating without required workers' compensation insurance, you'll face a one-time penalty of $2,500 right off the bat. But it doesn't stop there. You'll also be hit with an additional $100 per employee for every single day you remain non-compliant. These penalties can run for up to a year. Do the math on that: if you have five employees and go just one month without coverage, you're looking at $15,000 in daily penalties alone, plus the initial $2,500 fine.
If the state determines that you purposely failed to secure coverage, things get even worse. You can be charged with a class B felony. That's not a slap on the wrist—it's a serious criminal charge that can result in jail time and a permanent criminal record.
Beyond fines and criminal charges, the state can prohibit you from doing business in New Hampshire until you comply. And if one of your employees gets injured while you don't have coverage, you could be personally liable for all their medical costs and lost wages. A single serious workplace injury can easily run into six figures. That's the kind of financial burden that can sink a small business.
There are also penalties for failing to file required reports. If you don't file a First Report of Injury when an employee gets hurt, you can be fined up to $2,500. If you fail to file other required state forms under RSA 281-A:7, you'll face civil penalties of $50 per day for each day you're out of compliance.
Your Reporting Responsibilities
Getting insurance is just the first step. You also have ongoing responsibilities once you're up and running.
When an employee gets hurt or sick from work, you must file a First Report of Injury with the New Hampshire Department of Labor within five calendar days of learning about the incident. This deadline applies to all work-related injuries and illnesses, even minor ones that only require first aid. The form you'll need is called the Employer's First Report of Occupational Injury or Disease, also known as Form 8WC.
Five days might sound like plenty of time, but it goes by quickly when you're dealing with the immediate aftermath of a workplace injury. Set up a clear process for injury reporting so you don't miss this deadline. The $2,500 fine for failing to file is easily avoidable if you have a system in place.
How to Get Coverage and Stay Compliant
Getting workers' compensation insurance in New Hampshire is straightforward. You'll need to purchase a policy from an insurance company licensed to write workers' comp coverage in the state. Once you have coverage, you must file evidence of that coverage with the New Hampshire Department of Labor.
Your premium will be based on your industry classification, your payroll, and your claims history. Riskier industries like construction will pay higher rates than office-based businesses. The good news is that if you maintain a safe workplace and keep claims low, your premiums can decrease over time.
Shop around when you're looking for coverage. Rates can vary significantly between insurance carriers, and some specialize in certain industries. Working with an independent insurance agent who understands New Hampshire's workers' compensation market can help you find the best coverage at the most competitive price.
If you have questions about your specific situation or need help understanding the requirements, the New Hampshire Department of Labor's Workers' Compensation Division can provide guidance. You can reach them at (603) 271-3176 or toll-free at (800) 272-4353.
Workers' compensation isn't optional in New Hampshire if you have employees—it's a fundamental part of running a legal, responsible business. The penalties for non-compliance are too severe to ignore, and more importantly, having coverage protects both your employees and your business from financial catastrophe. Get your coverage in place before you hire, keep your policy current, and file injury reports promptly. It's that simple.
