Workers’ Comp Insurance in New Hampshire

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Why Do You Need Workers’ comp?

The State of New Hampshire requires workers’ compensation insurance coverage by every employer. The coverage must be in place before the first employee hire. New Hampshire Workers’ Comp Insurance is a no-fault system in which guarantees worker protection against illness or injury that occurs in the course of employment. The law places an affirmative duty on employers to get insurance and keep it.

The no-fault system provides immediate access to medical care and coverage of lost wages; it protects workers and their families. At the same time, the system protects employers from lawsuits that could expose their business and personal assets.

Buying Workers’ Compensation in New Hampshire

New Hampshire laws and procedures offer a full range of workers’ comp choices for employers including some profit-making ideas. If you can join a group insurance trust, you can become a member of a mutual fund that may gain in value and pay dividends.

Instructions for Buying

You should prepare to explore possibilities in the open market, group self-insurance, and the assigned risk pool. Large companies with well-established finances can apply to self-insure, small and medium-sized business would more likely find a great fit in the open market or a group-self-insured trust. For all purposes, the below-listed steps will prepare you to buy insurance.

  • Gather information on the number of employees and their occupation codes.
  • Locate and copy the current workers’ comp policy.
  • If no current policy, then get a copy of the last policy.
  • Get a copy of your mod or modified experience rating.
  • If you have no rating, then you should get a copy of a loss run from the last insurer.

What You Should Know About Workers’ comp in New Hampshire

Employers must show proof of their coverage. Employers must post a notice of compliance with the state’s workers’ compensation requirements. The official poster must be in a conspicuous location; it also advises employees of their rights. Subcontractors have a legal responsibility as employers to cover their employees.

Is Your Business Required to Carry?

The answer to the question of whether you need to be covered in New Hampshire is likely to be yes. The state provides few exceptions or exemptions from coverage. The below-listed categories are exempt under New Hampshire law.

  • Sole proprietorships
  • Self-employed persons doing business as individuals or independent contractors
  • Corporations with only three corporate officers and no other employees (the minimum required by law)

Where to Buy Insurance?

  • 1

    Buy Insurance on the Open Market

    The open market is the best place to get competitive commercial insurance quotes. If you are not familiar with workers’ comp or the New Hampshire market, then you could use licensed agents and brokers to find the best prices and coverage.

  • 2

    Get a License for Self-insurance

    Financially sound firms with established records for sound business practices and strong finances can apply for a license to self-insure. As a licensee of the state, they must follow requirements for both employer and insurer. Self-insured firms must administer benefits, adjust claims, and post security bonds and excess liability coverage.

  • 3

    Join a Group Self-insurance Trust

    Financially responsible firms can join group self-insurance trusts. The law specifically authorizes groups of similar or like businesses to work together. The leading trade associations and business groups in New Hampshire are frequent sponsors of group trusts.

    The trusts usually require membership in the sponsor organization. Some self-insured employers group trusts offer low rates and association benefits such as dividends and mutual fund ownership. You should inquire with any affiliated organizations for this benefit.

  • 4

    Buy Insurance Through the Assigned Risk Pool

    The firms that cannot get quotes from open market providers can get coverage in the assigned risk pool. The NCCI is the New Hampshire risk pool manager. Applicants denied quotes by market firms get referrals to NCCI by law.

How Much Does Workers’ comp Insurance Cost?

One survey of all New Hampshire employers, across all classifications, showed that New Hampshire employers paid $1.28 per $100 in payroll. The mix of occupations and the experience modification rating have big impacts on the base premium. The occupational mix sets the base amount of premium, and the mod rating can raise or lower the recommended premium.

What Is the Cost of Not Getting Workers’ comp Insurance

The costs of not getting workers’ comp coverage in New Hampshire can be severe. The state can impose civil penalties and bring charges for willful refusal to comply. If an uninsured employer experiences a covered injury or illness, then the employer will have legal exposure for damages in a civil lawsuit. The employer will be liable for the workers’ comp benefits that the employee should have received from coverage.

Factors That Impact Coverage

  • Legal

    All non- exempt employers and employees must have workers comp coverage. If the employer fails to comply, then the state can impose penalties of up to $100 per employee per day. The rule for the employer is strict; they must have coverage before the first hire.

  • Liability

    Employees of subcontractors must be covered by their immediate employer. However, the prime contractor will be liable for the missing benefits should the subcontractor fail to cover. The state makes verification as simple as one phone call or online search. Prime contractors must get proof of compliance or risk liability, and penalties.

  • Rates

    The NCCI is the rate-setting agency for New Hampshire. Insurers can adjust their rates upward to account for risk assessments based on the employer’s modified experience rating. For example, a Mod rating of 1.0 would not change the premium; a mod of .75 would lower the premium, and a rating of 1.25 would raise the premium.

    Safety is the other factor affecting rates. Many private insurers have special rates for firms that aggressively apply safety standards, training, and approved programs. Maintaining an approved safety program can lower your rates.

Other Helpful Tips

In New Hampshire, the policy strongly favors getting employees covered and making sure that they know their rights. The law makes every party part of the mission. For example, if a voluntary market provider declines coverage for an applicant, then it must provide a referral to the NCCI assigned risk pool. The insurance company must provide information and an application form. The policy is clear, employees must have coverage, and employers must have workers’ comp insurance before making a hire.

Conclusion

New Hampshire employers must pay particular attention to the requirements for New Hampshire Workers’ Comp Insurance because the state government takes an active role in ensuring coverage. With few exemptions and the lowest possible threshold of one part-time employee, nearly every employer must have insurance or self-insurance.

Sources:

  • NCCI Assigned Risk- New Hampshire
    https://www.ncci.com/Articles/Documents/RM_State_Instructions_NH.pdf

  • Employer’s Guide to Workers’ compensation
    https://www.nh.gov/labor/documents/employers-guide.pdf

  • Self-insurance regulations
    https://www.nh.gov/labor/workers-comp/self-insurance.htm