Workers’ Compensation in New Hampshire
What kind of work do you do?
Business owner in woodshop consulting clipboard.
Choose from the nation's best insurance providers
Logos of Insureon's business insurance carrier partners

New Hampshire workers' compensation insurance

The State of New Hampshire requires every employer to provide workers’ compensation insurance to their employees. This business insurance policy covers the cost of medical treatment for work-related injuries.

Who needs workers’ comp in New Hampshire?

Every state has different requirements for workers’ compensation insurance. New Hampshire's workers' compensation law mandates this coverage for all employers, even if the company only has one employee. This includes part-time workers and family members.

Who in New Hampshire is not required to have workers’ comp insurance?

New Hampshire strives to maintain near-universal workers’ comp coverage. This means that every employer in the state must provide workers’ comp insurance, except for:

A limited number of employee types are exempt from coverage, including:

  • Railroad employees involved in interstate commerce whose rights are defined under the Federal Employers’ Liability Act
  • Direct sellers
  • Qualified real estate brokers, agents, or appraisers
  • Individuals who provide services related to the residential placement of disabled people
Find workers' compensation insurance quotes for New Hampshire businesses
Small business owner looking for insurance quotes on their tablet.

Do business owners need to be included in workers' compensation?

It depends on the type of business you have.

Sole proprietors, partners, and self-employed individuals are exempt from buying workers’ comp insurance for themselves. However, they may purchase it if desired. Given the high cost of medical expenses, that can be a smart business decision, especially for high-risk professions.

Sole proprietors who operate as subcontractors under a general contractor, but who have no employees, may need to buy insurance if required to do so by their general contractor.

Officers of a corporation or members of an LLC are exempt as long as their business entity has three or fewer executives or members. However, once a fourth executive or LLC member joins the business, workers’ compensation insurance is required.

Entities with employees, regardless of the number of executives or members, must have workers’ compensation coverage for those employees.

Are independent contractors required to have workers’ comp coverage?

No, as long as they can prove they are independent contractors. This involves meeting the criteria defined in the New Hampshire workers’ compensation statute (RSA 281-A:2 VI).

The State of New Hampshire requires every employer to provide workers’ compensation insurance to their employees.

What does workers' comp cover for New Hampshire businesses?

Here are several examples of how workers' compensation insurance coverage helps pay expenses for injured workers:

  • A retail store employee slips on a wet floor and hits their head. In this instance, workers' compensation would cover their emergency room trip, head MRI, and any follow-up medical expenses during their recovery.
  • A registered nurse develops a shoulder injury from lifting and turning patients. Workers' comp would cover their surgery, medications, and physical therapy. It also provides temporary disability benefits until they have recovered, including a percentage of their average weekly wage.
  • A wholesale stocker develops a back injury from many years of lifting and moving heavy stock onto pallets and trucks. Workers' comp would cover their medical provider appointment, medications, and then two months of physical therapy to help them recover.
  • A fast food worker burns themselves while preparing an order for a customer. Workers' comp would cover their medical treatment and pain medication.

What does workers' compensation insurance not cover?

Additionally, here's what your workers' comp policy won't cover:

  • Injuries caused by intoxication, drugs, or company policy violations
  • Injuries claimed after a firing or layoff
  • Wages for a replacement worker
  • Occupational Safety and Health Administration (OSHA) fines

How much does workers' compensation insurance cost in New Hampshire?

A small business owner calculating their workers' comp insurance payments

The average cost of workers’ compensation in New Hampshire is $44 per month.

Your workers' comp premium is calculated based on a few factors, including:

How is workers' comp purchased in New Hampshire?

Business owners in New Hampshire have a few choices when it comes to buying a workers' compensation policy:

  • Private insurance companies. You could contact each workers' compensation insurance carrier independently to compare their products and rates, but that's where agents and brokers like Insureon come in. As the nation's leading digital insurance agency, Insureon partners with 30+ top-rated insurance carriers to deliver the right coverage for your business. Fill out an easy online application to get started.
  • If denied, you can obtain coverage from the assigned risk pool. Businesses with higher risks can buy coverage from the New Hampshire Assigned Risk Pool, which is administered by the National Council on Compensation Insurance (NCCI).
  • You can self-insure your business. Employers who meet certain requirements can apply to the New Hampshire Workers’ Compensation Division of the Department of Labor. You must provide a financial guarantee, such as a surety bond, and purchase excess insurance coverage for claims that exceed your guaranteed amount.

Verified workers' compensation insurance reviews

Hear from business owners like you who purchased workers' comp.

How are workers' comp premiums calculated?

Insurance providers use a specific formula for calculating workers' comp premiums:

Workers' compensation premium calculation formula

Here's a breakdown of this equation:

  • The classification rate reflects your employees' risk. Each worker has a classification code for the type of work they do. Insurers look up those codes in a database to find the associated rate, which is lower for office workers and higher for carpenters, tree trimmers, and others with a higher rate of injuries. Like most other states, New Hampshire relies on the National Council on Compensation Insurance (NCCI) database.
  • The experience modification rate (EMR) reflects your business's risk. The average experience modification rate is 1.0, which means a business is similar in risk to others in its profession. Higher EMRs reflect higher risks, such as a history of claims. The EMR only comes into play for annual workers' comp premiums of at least $5,000, so it's not a factor for many small business owners.
  • The insurer multiplies these numbers with your payroll divided by 100 to determine your workers' compensation rate. Workers' compensation audits are typically done each year to ensure your business pays the right premium for this coverage.

How can New Hampshire business owners save money on workers' compensation?

To save money on workers' comp insurance, it's important to make sure you classify your employees correctly. Employees with desk jobs or other jobs with a low risk of injury cost less to insure. This also helps you avoid misclassification fines.

In some cases, New Hampshire employers can choose to buy pay-as-you-go workers' compensation. This type of workers' comp policy has a low upfront premium, and lets you make payments based on your actual payroll instead of an estimated payroll. It's useful for businesses that hire seasonal help or have fluctuating numbers of employees.

A ghost policy is a cheap option in some states, including New Hampshire. A ghost policy is a workers' comp policy in name only. It provides no protection or medical benefits, but can fulfill contractual requirements for a workers' comp certificate at a reduced price.

Finally, a documented safety program can help lower workers' comp costs. A safer workplace means fewer accidents, which helps keep your premium low.

How does workers’ comp work in New Hampshire?

When an employee suffers a workplace injury or develops an occupational disease, workers' compensation insurance provides reimbursement for medical bills, ranging from emergency care to medication and physical rehabilitation. It also provides weekly disability payments while the employee recovers.

Workers' compensation benefits for injured workers in New Hampshire include:

  • Medical benefits (all medical care related to the injury)
  • Temporary total disability benefits
  • Permanent total disability benefits
  • Temporary partial disability benefits
  • Permanent partial disability benefits
  • Permanent impairment award
  • Death benefits
  • Vocational rehabilitation

Policies usually include employer's liability insurance, which can help cover legal expenses if an employee blames their employer for an injury. However, the exclusive remedy provision in most workers' comp policies prohibits an employee from suing their employer once they accept workers' comp benefits.

For more information, visit the New Hampshire Department of Labor (DOL) Workers' Compensation Division.

What are the penalties for not having workers’ comp insurance in New Hampshire?

Violating New Hampshire’s workers’ compensation statute is a serious concern. If you fail to provide required coverage to your employees, you may be liable for a one-time fine of $2,500 and a fine of $100 per employee for each day your business does not have coverage.

The state may also suspend your ability to conduct business in the state if you remain noncompliant with its workers’ comp requirements.

Workers’ compensation death benefits in New Hampshire 

If an employee dies from a work-related accident or illness, the employer’s workers’ comp death benefits will pay for:

  • Burial expenses not to exceed $10,000
  • Weekly compensation to the deceased employee’s surviving dependents

Workers’ comp settlements in New Hampshire

A workers’ compensation settlement is an agreement between the injured employee, employer, and insurer that resolves a workers’ compensation claim. This benefits both the employee and the employer.

In New Hampshire, many workers’ comp claims end in settlements. This means the parties to the claim – the injured employee, the company, and the insurer – must agree on a lump-sum payment. In return, the employee (or the employee’s survivors) agree to a suspension of future benefit payments.

Employees who wish to enter into an agreement to take a lump-sum payment in lieu of future benefits must secure the permission of the New Hampshire Workers’ Compensation Division.

New Hampshire workers’ compensation law for statute of limitations

In New Hampshire, employees must file a workers’ comp claim within two years from the date of injury or illness.

In cases in which an occupational injury or illness emerged slowly and the employee didn’t immediately notice it, the person must file a claim as soon as they become aware of the problem (or should have become aware by virtue of reasonable diligence).

Once employers learns of the employee’s injury, they are required to submit a First Report of Injury form within five days.

Get free workers’ comp quotes with Insureon

If you are ready to buy a workers' compensation policy, start a free application with Insureon to compare quotes from top-rated insurance carriers. A licensed insurance agent will help answer your questions and explain your coverage options. Once you find the right policy, you can usually begin coverage and get your certificate of insurance in less than 24 hours.

Updated: July 31, 2025

Find workers' comp insurance quotes

Save money by comparing insurance quotes from multiple carriers.
EXPLORE ON INSUREON
Workers' comp insurance for 1099 employeesWhat to do when your employee is injured at workOther recommended insurance policies for small businesses in New HampshireWhat is a minimum premium workers’ compensation policy?Compare workers’ comp rates by stateBest workers' compensation insurance for small businesses