New Hampshire
Workers Compensation Insurance
Call Us: 603-766-3733
A single workplace injury can upend a small business faster than most owners expect. Between medical bills, lost wages, and potential lawsuits, the financial exposure is real and often underestimated. New Hampshire has its own set of rules governing workers' compensation, and they differ in meaningful ways from neighboring states. If you run a business in the Granite State, whether it's a construction crew in Manchester or a tech startup in Portsmouth, understanding your workers' comp obligations isn't optional. It's the difference between a manageable claim and a business-ending crisis. This guide breaks down New Hampshire's coverage requirements, benefit limits, premium calculations, and the claims process so you can make informed decisions about protecting your employees and your bottom line. The good news? New Hampshire's workers' comp market has been remarkably favorable for employers in recent years, with rates dropping consistently. But favorable conditions don't mean you can afford to be careless about how you structure your coverage. The details matter, and getting them wrong carries real consequences.
Understanding New Hampshire Workers Compensation Mandates
New Hampshire takes workers' compensation seriously. The state views it as a fundamental protection for employees, and the regulatory framework reflects that priority. Employers who try to cut corners here face steep consequences, but the rules are straightforward once you understand who's covered, who's exempt, and what happens if you ignore the mandate.
Who is Required to Carry Coverage Under NH Law
The threshold is about as low as it gets: New Hampshire employers with one or more employees are required to carry workers' compensation insurance. That means even hiring a single part-time employee triggers the requirement. There's no waiting period and no minimum number of hours worked per week that lets you off the hook. Full-time, part-time, and seasonal workers all count.
This applies to virtually every type of business entity operating in the state. Restaurants, manufacturing plants, retail shops, professional offices: if you have someone on payroll, you need a policy. The coverage must be in place before the employee's first day of work, not after.
Exemptions for Sole Proprietors, Partners, and LLC Members
Sole proprietors with no employees aren't required to carry workers' comp for themselves. The same goes for partners in a partnership and members of an LLC who don't have additional employees. These individuals can voluntarily elect coverage, and many do, especially in physically demanding industries like landscaping or contracting where the risk of injury is high.
Corporate officers present a slightly different situation. In New Hampshire, corporate officers are generally considered employees and must be included in coverage unless they formally elect to be excluded. If you're a small business owner wearing multiple hats, it's worth having a conversation with a knowledgeable insurance advisor, like the team at Avery Insurance Agency, to determine whether opting into coverage makes sense for your specific situation.
Penalties for Non-Compliance and Uninsured Employers
Skipping workers' comp isn't a gamble worth taking. Non-compliance can result in a one-time penalty of up to $2,500, plus up to $100 per employee per day that coverage is missing. For a business with 20 employees, that daily fine adds up to $2,000 per day on top of the initial penalty. Within two weeks, you're looking at nearly $30,000 in fines alone.
Beyond the financial penalties, uninsured employers lose the protection that workers' comp provides against employee lawsuits. If an injured worker sues and you don't have coverage, you're personally liable for all damages. The state's Department of Labor actively investigates non-compliant employers, and complaints from injured workers often trigger audits.
By: Tod O’Dowd, CIC, CAPI
President of Avery Insurance Agency
Coverage Components and Benefit Limits in the Granite State
Workers' compensation in New Hampshire covers a broad range of benefits. Understanding the specific components helps employers set realistic expectations and communicate effectively with employees after an injury.
Medical Payments and Rehabilitation Services
Workers' comp covers all reasonable and necessary medical treatment related to a workplace injury. That includes emergency room visits, surgeries, prescription medications, physical therapy, and rehabilitation services. There's no cap on medical benefits in New Hampshire, which means an employer's policy will continue paying for treatment as long as it's medically necessary and connected to the original injury.
Rehabilitation services extend beyond physical recovery. If an employee needs occupational therapy or assistive devices to return to work, those costs are covered too. The treating physician plays a central role in determining the scope and duration of treatment.
Wage Replacement and Disability Classifications
When an injury prevents an employee from working, wage replacement benefits kick in. New Hampshire classifies disabilities into four categories: temporary total, temporary partial, permanent total, and permanent partial. Each has its own calculation method and duration limits.
As of July 1, 2025, the
maximum total disability rate is $2,309.00, and the minimum total disability rate is $461.74. These figures are tied to the state's average weekly wage and adjust annually. Temporary total disability benefits generally equal 60% of the employee's average weekly wage, subject to the maximum and minimum thresholds.
| Disability Type | Benefit Calculation | Duration |
|---|---|---|
| Temporary Total | 60% of average weekly wage | Until employee can return to work |
| Temporary Partial | 60% of wage difference | Up to 262 weeks |
| Permanent Total | 60% of average weekly wage | Ongoing |
| Permanent Partial | Scheduled based on body part | Varies by injury |
Death Benefits and Vocational Assistance
If a workplace injury results in death, the employee's dependents receive death benefits. These typically include a percentage of the deceased worker's average weekly wage, paid to the surviving spouse and dependent children. Funeral expenses are also covered up to a statutory limit.
Vocational rehabilitation is available when an employee can't return to their previous job due to injury. The state may authorize retraining, education, or job placement services to help the worker transition into a new role. These services are coordinated through the employer's insurance carrier and often involve a vocational rehabilitation counselor.
Your premium isn't a random number. It's built from specific data points that reflect your industry, payroll size, and safety track record.
The Role of NCCI Class Codes and Payroll
New Hampshire uses the National Council on Compensation Insurance (NCCI) classification system to assign risk codes to different job types. A clerical office worker carries a very different rate than a roofer, and the class code reflects that difference. Each code has a base rate per $100 of payroll.
Your total payroll for each classification is then multiplied by the corresponding rate. This is why accurate payroll reporting matters so much. Misclassifying employees into lower-risk categories might reduce your premium initially, but it triggers audit penalties that far exceed any short-term savings.
Impact of the Experience Modification Rate (MOD)
Your experience modification rate, or MOD, is essentially your safety report card. A MOD of 1.0 means your claims history matches the industry average. Below 1.0 means you're safer than average and get a discount. Above 1.0 means you're paying a surcharge.
Here's what makes this especially relevant right now: New Hampshire has seen
14 consecutive years of workers' compensation rate reductions in the voluntary market, with cumulative reductions exceeding 66%. The calendar year 2024
combined ratio for workers' compensation was 86%, indicating strong underwriting profitability. That means the market is healthy, and employers with good MOD scores are in an excellent position to negotiate competitive rates.
Securing a Policy Through the Voluntary or Assigned Risk Market
Not every business gets the same access to coverage. Where you buy your policy depends on your risk profile and claims history.
Purchasing from Private Insurance Carriers
Most New Hampshire employers purchase workers' comp through the voluntary market, meaning directly from licensed private insurance carriers. This is where you'll find the most competitive pricing and the broadest range of policy options. Carriers compete for your business, especially if your MOD is favorable.
Working with an independent agency like Avery Insurance Agency gives you access to multiple carriers simultaneously. Rather than getting a single quote, you can compare options from several insurers and select the policy that best fits your risk profile and budget. An agency with deep local experience, over 125 years in Avery's case, understands which carriers write specific industries well and which ones to avoid.
The New Hampshire Workers Compensation Assigned Risk Plan
If you can't find coverage in the voluntary market, typically due to a high MOD, poor claims history, or an unusually hazardous operation, you'll be placed in the assigned risk pool. This is the insurer of last resort. Coverage is guaranteed, but premiums are significantly higher than voluntary market rates.
The assigned risk plan exists so no employer is left without an option. That said, being in the pool should be temporary. Most businesses can transition back to the voluntary market within two to three years by improving their safety record and reducing claims frequency.
Employer Responsibilities During the Claims Process
How you handle a claim in the first 24 to 48 hours often determines the outcome. Delays and missteps create complications that drag out recovery times and inflate costs.
Reporting Timelines and the First Report of Injury Form
New Hampshire requires employers to file a First Report of Injury with their insurance carrier within five days of learning about a workplace injury. Missing this deadline can result in penalties and delays in benefit payments to the injured employee. The form captures details about the injury, the circumstances, and the employee's job classification.
Keep blank forms accessible at every worksite. Train supervisors to document injuries immediately, even if the employee says they're fine. Many claims that seem minor at first develop into significant issues weeks later, and early documentation protects everyone involved.
Managed Care Programs and Preferred Provider Requirements
New Hampshire allows employers to establish managed care programs for workers' compensation claims. These programs direct injured employees to specific healthcare providers who specialize in occupational injuries. The goal is faster, more effective treatment and quicker return-to-work outcomes.
Employers can designate a preferred provider, but employees retain the right to choose their own physician after initial treatment. Communicating your managed care program clearly before an injury occurs reduces confusion and friction during what's already a stressful situation.
Best Practices for Reducing Risk and Insurance Costs
The most effective way to lower your workers' comp costs is to prevent injuries in the first place. Establish a written safety program that includes regular training, hazard assessments, and incident reporting protocols. Companies that invest in safety culture consistently see lower claim frequencies and better MOD scores.
- Return-to-work programs that offer modified duty get injured employees back on the job faster and reduce total claim costs
- Annual policy audits ensure your class codes and payroll figures are accurate, preventing surprise charges
- Bundling workers' comp with other business insurance lines often unlocks multi-policy discounts
- Reviewing your MOD worksheet each year helps you catch errors that could be inflating your premium
One thing to keep in mind: the cheapest policy isn't always the best value. A carrier with strong claims management and loss control services can save you far more over time than a bare-bones policy with a slightly lower premium.
Frequently Asked Questions
Do I need workers' comp if I only hire subcontractors? If your subcontractors carry their own workers' comp policies, you're generally not responsible for covering them. But if they don't have coverage, New Hampshire may consider them your employees for workers' comp purposes, making you liable.
Can I pay for workers' comp claims out of pocket instead of buying a policy? No. New Hampshire does not allow self-insurance for most employers. Only large employers who meet specific financial requirements can apply for self-insured status through the Department of Labor.
How long does an injured employee have to file a claim? Employees must notify their employer within two years of the injury or within two years of discovering an occupational disease. Prompt reporting is always better for both parties.
What happens if an employee is injured while working remotely? Remote work injuries can be covered if the injury occurred during work activities and within the scope of employment. These claims require careful documentation of the circumstances.
Does workers' comp cover mental health conditions? New Hampshire may cover mental health conditions if they result directly from a physical workplace injury. Standalone mental health claims without a physical component are more difficult to establish under current state law.
Making the Right Coverage Decision for Your Business
Workers' compensation insurance in New Hampshire protects both your employees and your business from the financial fallout of workplace injuries. The state's requirements are clear: if you have even one employee, you need coverage. With 14 consecutive years of rate reductions, the market conditions are working in your favor, but only if you're proactive about safety, accurate about payroll reporting, and strategic about where you buy your policy.
If you're unsure whether your current coverage matches your actual risk, or if you're starting a new business and need to get a policy in place, reach out to Avery Insurance Agency. Their consultative approach is built around identifying gaps before they become problems, giving you the confidence to focus on running your business.
ABOUT THE AUTHOR:
Tod O’Dowd, CIC, CAPI
I'm the President of Avery Insurance Agency, a family-owned independent agency serving individuals and businesses across New England and in 40+ states. With a hands-on, consultative approach to personal and commercial risk, I help clients — from high-net-worth homeowners and contractors to restaurant owners and property managers — find the right coverage without the guesswork of working with a single-carrier agent.
What Our Clients Say
Trusted by Families and Businesses for Over a Century
Trusted by New Hampshire Families and Businesses for Over a Century
Your Life. Protected.
Complete Personal Insurance for Individuals Who Expect More
One Agency. Every Coverage You Need. No Gaps, No Surprises.
Home Insurance
Your home is your most valuable asset. Avery’s home insurance protects your property, belongings, and liability so you can feel secure no matter what happens.
High-Value Home Insurance
Own a home valued over $2 million? Our Premier Client Services program provides coverage built around high-value properties and the unique risks they carry.
Auto Insurance
Whether you drive a daily commuter, a classic car, or a motorcycle, Avery finds the right auto coverage for your vehicle and your budget.
Boat & Watercraft Insurance
From small boats on New Hampshire’s lakes to luxury yachts, Avery provides watercraft insurance covering your vessel, passengers, and liability on the water.
Umbrella / Personal Liability Insurance
An umbrella policy adds an extra layer of liability protection above your home and auto coverage. One of the most cost-effective ways to protect your financial future.
Valuable Possessions Insurance
Jewelry, art, collectibles, and other high-value items need coverage beyond a standard homeowners policy. Avery insures your most prized possessions at full appraised value.
Protect Your Business & Livelihood
Commercial Insurance Solutions Designed for New England Businesses.
Comprehensive Commercial Coverage That Keeps Your Business Running
General Liability Insurance
Protect your business from third-party claims of bodily injury, property damage, and personal injury. General liability is the foundation of any solid business insurance program.
Commercial Property Insurance
Covers your building, equipment, inventory, and other physical assets against fire, theft, vandalism, and other covered losses. Keep your business protected from the unexpected.
Workers’ Compensation Insurance
Workers’ comp covers medical costs and lost wages when an employee is injured on the job. Avery helps businesses meet state compliance requirements and manage costs effectively.
Cyber Liability Insurance
Data breaches and cyberattacks are a growing risk for businesses of all sizes. Cyber liability covers response costs, legal fees, and customer notification expenses after a security incident.
Employment Practices Liability Insurance
Covers your business against employee claims of wrongful termination, discrimination, harassment, and related issues. Essential for any business with employees.
Commercial Auto Insurance
Whether a single truck or a full fleet, commercial auto insurance protects your business against accidents, damage, and liability on the road.
We Know Your Industry
Tailored Insurance Programs for the Industries That Drive New Hampshire
We Understand the Risks Your Industry Faces — and How to Manage Them
Contractors Insurance
From general contractors to specialty trades, Avery understands the unique liability and property exposures your business faces on every job site in New England. We build coverage programs that keep your crew and company protected.
Restaurants & Hospitality
Restaurants, hotels, and marinas face distinct risks — from slip-and-fall liability to liquor liability and food spoilage. Avery designs coverage programs for the specific needs of the hospitality industry.
Real Estate & Property
Whether you own a portfolio of investment properties or manage a condo association, Avery provides the right mix of property, liability, and management coverage to protect your real estate investments.
We Make It Simple
Getting Covered with Avery Is Easy
Step 01
Connect with an Avery Advisor
Call, email, or request a coverage online and we will respond the same business day.
Step 02
We Build Your Coverage Plan
We shop top-rated carriers, compare your options, and recommend the best fit for your needs.
Step 03
You Get Protected and Stay Protected
We place your coverage, review it annually, and advocate for you if you ever need to file a claim.
Let’s Clear Things Up
Got Questions? We’ve Got Answers.
Straight Answers From the Advisors Who Know This State Best
What does it mean that Avery is an independent insurance agency?
An independent agency like Avery is not tied to any single insurance company. We represent multiple top-rated carriers, which means we can shop the market on your behalf and recommend the coverage that truly fits your needs — not the one that benefits any single insurer.
This independence gives you access to more options and unbiased advice. Our advisors are compensated to serve your interests, not to push a specific product. That is a significant advantage over captive agents who can only offer one carrier’s policies.
How much does it cost to work with an Avery advisor?
There is no direct cost to you for working with an Avery advisor. Independent agents are compensated through commissions paid by the insurance carriers when a policy is placed. You receive expert guidance, market comparisons, and ongoing service at no extra charge.
In fact, many clients find that working with Avery saves them money. Our advisors know how to identify the right coverage levels so you are not paying for protection you do not need, and you are not left exposed where you do.
Does Avery help with claims?
Yes — and this is one of the most important things that sets Avery apart. When you have a claim, our in-house claims advisors go to work for you. We guide you through the process, communicate with the insurance company, and advocate for a fair and timely outcome.
Several of our team members hold professional claims designations, including AIC and AINS. We do not just help you file paperwork — we actively represent your interests to make sure you receive the full benefit your policy provides.
Where in New Hampshire does Avery provide coverage?
Avery serves clients throughout the state of New Hampshire from our offices in Wolfeboro and Portsmouth. Whether you live in the Lakes Region, the Seacoast, the White Mountains, or the Merrimack Valley, an Avery advisor is ready to help you find the right coverage.
Our advisors understand the specific risks that come with living and doing business in New Hampshire — from harsh winter weather to seasonal watercraft exposure. We apply that local knowledge to every coverage recommendation we make.
How does Avery handle high-value homes and assets?
Avery offers a dedicated Premier Client Services program for clients with homes valued over .5 million, significant investment portfolios, fine art collections, jewelry, yachts, and other complex assets. This program pairs you with a specialist who understands the unique risks of high-net-worth households.
Through carriers that specialize in high-value personal lines, we provide guaranteed replacement cost coverage, agreed value policies, and comprehensive risk management strategies. Your advisor will conduct a detailed review of your full asset portfolio to make sure nothing is overlooked or underinsured.
How often should I review my insurance coverage?
Avery recommends a full coverage review at least once a year. Major life events — buying a home, starting a business, adding a vehicle, getting married, or making significant home improvements — are all good triggers for an immediate review outside your annual cycle.
Insurance needs change over time, and policies that were right for you a few years ago may leave gaps today. Avery advisors proactively reach out to clients for annual reviews and keep up with changes in the insurance market that could affect your coverage or premium. Our goal is to make sure you are always protected and never paying for coverage that no longer fits.
Insurance Tips & News
Stay Informed with the Avery Blog
Practical Insurance Advice for New Hampshire Families and Business Owners
Contact Us
Portsmouth (HQ)
7 Islington St #102, Portsmouth, NH 03801
Phone Number: 603.766.3733
Wolfeboro
21 S Main Street, Wolfeboro, NH 03894
Phone Number: 603.569.2515