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.
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.
Where to Buy Insurance?
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.
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.
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.
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
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.
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.
NCCI Assigned Risk- New Hampshire
Employer’s Guide to Workers’ compensation