New Hampshire workers' compensation insurance

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.

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:

• Sole proprietorships
• Limited liability companies (LLCs) with three or fewer executives or members
• Corporations with no more than three corporate officers and no employees other than those officers

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

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.

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).

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

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

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.

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.

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.

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

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.

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.

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.