FAQ: Workers' Compensation Insurance in New Hampshire

Workers' compensation insurance (or "worker's comp") is a commercial insurance policy that is designed to protect employers and employees alike.

It can provide coverage for medical expenses, lost wages, rehabilitation services, and other related expenses if an employee is injured on the job or is diagnosed with an occupational illness.

The good news for employers looking for coverage is that rates for workers’ compensation insurance in New Hampshire are lower than the national average.

Every different type of job is assigned a base rate for coverage. These rates are overseen by the NCCI and the NH Department of Insurance. Workers' compensation insurance companies must use these base rates but can adjust them up to 25% through policy debits, credits, and incentives.

Let's look at how much workers' compensation insurance costs for a few different kinds of jobs in New Hampshire. These price ranges are rates per every $100 of employer payroll.

  • Landscapers: $4.95 to $7.65
  • Plumbers: $2.91 to $4.53
  • Roofing contractors: $10.91 to $16.86
  • Retail store workers: $1.10 to $1.70
  • Clerical workers: $0.10 to $0.15
  • Restaurant workers: $1.11 to $1.71

Workers’ compensation rates are higher for jobs that have a significant risk of employee injuries and occupational illnesses. Your quoted costs will be based on the number of employees you have, how much they are paid, the types of jobs they do, and your company's safety record and workers’ compensation claims history. 

In New Hampshire, all employers, even non-profit organizations, are required to cover all their employees with workers’ compensation insurance. This coverage is required for full-time workers, part-time workers, and family members. 

In New Hampshire, workers' compensation coverage is only optional only for:

  • Sole proprietors, partners, and self-employed individuals
  • Corporations and LLCs that have three or fewer executive officers and no employees

If your business hires subcontractors, you are responsible for ensuring that they are covered by their own workers’ comp policy, otherwise, you may be held liable if they get injured while doing work for you.

Workers' compensation insurance shields your business against financial losses and potential lawsuits by ensuring that workers who are injured on the job receive the medical benefits and compensation for lost wages they deserve. 

Workers' compensation insurance provides coverage if employees suffer:

  • Traumatic injuries
  • Strains and sprains
  • Cuts, punctures, and lacerations
  • Repetitive motion injuries like carpal tunnel syndrome
  • Certain job-related mental health problems
  • Occupational diseases

Workers' compensation insurance in New Hampshire provides injured employees with:

  • Full coverage for all medical treatment and hospital stays
  • Full coverage for related expenses like ambulance rides, prescriptions, physical therapy, and supplies like crutches, slings, and wheelchairs
  • Reimbursement for mileage to and from necessary medical appointments
  • Disability pay if the employee must take time off work to recuperate
  • Lump sum awards for injuries that result in permanent impairment or disfigurement
  • Funeral and burial costs up to $10,000, and death benefits to the employee's spouse and dependents if a work injury is fatal

Sometimes, workers’ compensation claims are denied. Some of the most common reasons for denial include:

  • The claim was filed more than three years after the date of the injury
  • The occupational illness was preexisting, or the injury occurred outside of work
  • The accident occurred while an employee was under the influence of drugs or alcohol
  • The insurance company believes the injury was intentionally self-inflicted by the employee
  • The claim is suspected to be fraudulent

If you or your employees believe that a claim was unjustly denied, you can appeal the decision to the New Hampshire Department of Labor within 18 months of the claim denial.

A workers' compensation insurance certificate is a document that shows proof of insurance. Sometimes, clients may request to see this proof before they will hire you to do a job. The workers' compensation insurance certificate includes details like:

  • Name and address of the insured
  • Name of the insurance company and your policy number(s)
  • Effective date and expiration date of each policy listed
  • Your liability coverage limits

You will be issued a certificate by your insurer when you purchase your policy. 

Another way to demonstrate proof of insurance coverage is through the New Hampshire Department of Labor’s website, where anyone can do a search on employers to get verification of workers’ compensation insurance. This website shows the name of the insured, the insurance company, the policy number, and the effective date.

Independent insurance agents make finding the best workers’ compensation insurance coverage easy by shopping and comparing insurance quotes for you. Not only that, but these agents can cut the jargon and clarify the fine print so you know exactly what you’re getting.

No business is too small to benefit from working with an independent agent. These experienced agents work with multiple insurance companies to find you the best workers' comp coverage at the most competitive price. Arrange an obligation-free consultation with an independent insurance agent near you to get started.

For the most part, workers’ compensation benefits are not considered taxable income at the state or federal level. However, employees may face some taxes on these benefits if they are also receiving Social Security Disability Insurance benefits (SSDI) or Supplemental Security Income benefits (SSI).

Find Workers' Compensation Insurance Near You

National Average Cost of Workers' Compensation Insurance

Healthcare $1,825 Per $100,000 payroll

Retail Trade $2,850 Per $100,000 payroll

Construction $7,430 Per $100,000 payroll


Workers' Compensation Insurance Laws in New Hampshire

  • All employers in New Hampshire are required to either cover their employees with a workers' compensation insurance policy or be approved by the state to self-insure.
  • Workers’ compensation coverage must be purchased for each employee immediately upon hiring.
  • All employee injuries and occupational illnesses must be reported to the employer within two years.
  • When employers are made aware of a work-related injury or occupational illness, they must provide notification to the New Hampshire Department of Labor within five days of notification. This can be done by filing a First Report of Injury (REOI) form.
  • Employees may seek medical treatment from a doctor of their own choosing.
  • Failure to carry required workers' compensation insurance can result in penalties of a $2,500 fine plus a fine of $100 per uninsured employee for each day that they were not covered by workers’ comp insurance. Additionally, a stop-work order can be imposed on your business by the State of New Hampshire until you have secured coverage.

 

Common Workers' Compensation Claims in New Hampshire

New Hampshire does not report on-the-job injuries. However, here are some of the more hazardous industries and common injuries in this state.


The Top 10 Most Hazardous Jobs in New Hampshire

  1. Fishers and fishing-related workers
  2. Loggers
  3. Roofers
  4. Refuse and recyclable materials collectors
  5. Structural iron and steel workers
  6. Truck and delivery drivers
  7. Landscaping and lawn service workers
  8. Electrical power line installers and repair workers
  9. Construction workers
  10. Maintenance and repair workers


The Top 5 most reported worker injuries in New Hampshire:

  1. Slip, trip, and fall injuries
  2. Sprains and strains
  3. Punctures, cuts, and scrapes
  4. Struck by or against an object
  5. Motor vehicle accident injuries