Short answer: Yes. New Hampshire requires employers to obtain workers' compensation before hiring any employee, full- or part-time, including relatives and nonprofit staff. Sole proprietors need not cover themselves. Corporations and LLCs with three or fewer officers or members and no other employees may skip a policy until a fourth officer joins or any employee is hired.
Coverage before the first hire
The New Hampshire Department of Labor employer information page states that employers must apply for and obtain coverage prior to the hiring of any employee. The Workers' Compensation Insurance FAQs cite RSA 281-A:5: every employer who has any employees, full or part-time, must cover them with workers' compensation written by a carrier. It does not matter if they are related, and it does not matter if the business is a nonprofit.
Liability or health insurance does not replace workers' compensation. The FAQ is explicit on that point.
Who can skip covering themselves
- Sole proprietors, partners and self-employed persons are not required to carry workers' compensation on themselves but may elect coverage under RSA 281-A:3. A sole proprietor or partner working as a subcontractor without employees may still be required by a general contractor to carry a policy.
- Corporations and LLCs with three or fewer executive officers or LLC members and no other employees need not obtain coverage, but may elect it. Once there is a fourth executive officer or LLC member, or once any employees are hired, workers' compensation must be obtained. After coverage is in place, all persons including officers or members are covered; up to three executive officers or LLC members may then elect exclusion under RSA 281-A:18-a by giving the agent name, address, date of birth and title so the carrier can notify Labor.
Independent contractors
An independent contractor must meet the criteria in RSA 281-A:2, VI, including a federal employer identification number and control over the work and its timing. Someone who fails that test is an employee for coverage purposes.
Reporting injuries
Every employer or self-insurer must record and report to the commissioner any injury sustained in the course of employment as soon as possible, but no later than five days after the employer learns of it. Failure to file a First Report of Injury can bring a fine of up to $2,500. Labor does not forward the First Report to the carrier; the employer must still notify the insurer.
Coverage verification and lapse letters
Policy information is reported to Labor through NCCI. If Labor has not received notice of new or reinstated coverage, it sends a questionnaire five days before a termination date so you can confirm status before a gap opens.
Carrier identification numbers
Carriers new to writing New Hampshire workers' compensation must contact the Department for a Carrier Identification Number before underwriting, under LAB 304.04(e). Writing without that number can bring civil penalties of $50 per day. Employers shopping coverage should use licensed agents and confirm the carrier is authorized for New Hampshire filings.
Self-insurance track
Chapter Lab 400 covers self-insurance for employers that can prove financial ability. Most small businesses will buy a commercial policy instead. Either path still requires First Report of Injury filings with Labor and separate notice to the claim administrator.
Coverage unit contacts
Labor's Coverage unit can be reached at (603) 271-3175, Claims at (603) 271-3174, Vocational Rehabilitation at (603) 271-3328 and Self-Insurance at (603) 271-6172. The main Workers' Compensation Division number is (603) 271-3176 or toll-free (800) 272-4353. Use the coverage line when a cancellation questionnaire arrives or when you need to confirm that a new policy has been reported through NCCI.
Family members and part-timers
Labor's FAQ answers two frequent myths directly: family members need coverage, and part-time employees need coverage. A teenager working weekends in a parent's shop counts. So does a nonprofit's unpaid-looking role that is actually paid employment under RSA 281-A. When in doubt, insure before the first shift.
Bottom line
In New Hampshire, plan on a workers' compensation policy before the first payroll hour unless you truly fit a sole-proprietor or three-officer exception with no employees. See our workers' compensation insurance overview.
Questions? Contact Alishahi Insurance or call (877) 711-4545. See insurance in New Hampshire.
Frequently asked questions
Is workers' comp required in New Hampshire?
Yes. Employers must obtain coverage before hiring any employee, full- or part-time, under RSA 281-A:5.
Do New Hampshire sole proprietors need workers' comp?
Not on themselves, though they may elect coverage. They must cover any employees they hire.
Can a small New Hampshire corporation skip workers' comp?
A corporation or LLC with three or fewer officers or members and no other employees is not required to obtain coverage, but may elect it.
How soon must a New Hampshire employer report a work injury?
As soon as possible, and no later than five days after learning of the injury.
Does general liability replace workers' comp in New Hampshire?
No. Workers' compensation is required by RSA 281-A; liability and health insurance are voluntary and do not substitute.
Alishahi Insurance · 439 N Canon Dr, Penthouse, Beverly Hills, CA 90210 · (877) 711-4545 · CA License #4348151. General information only. This isn't legal, tax or financial advice or a coverage determination. Coverage depends on policy language and underwriting, and rules vary by state.