Most New Hampshire businesses need workers compensation the moment they have employees, general liability that clients and landlords insist on, and property or a package policy for their equipment. Workers comp is the coverage New Hampshire law actually forces on you: under RSA 281-A there is no minimum headcount and no exception for part-time, seasonal, or family staff, so one employee triggers the duty.
Who this is for: New Hampshire owners, from a one-van contractor in Manchester to a 20-person shop in Nashua, who want to know what the state requires, what their contracts require, and how to buy it without overpaying.
The short version
- Workers comp is required once you have employees. New Hampshire sets no minimum headcount and no part-time exception, so one employee makes a policy mandatory (RSA 281-A:5).
- Owners get special treatment. A sole proprietor or partner is not required to cover their own injuries, and a corporation or LLC with three or fewer owners and no other staff is not required to carry a policy, though any of them may choose to.
- General liability is not a state mandate, but nearly every lease, client contract, and general contractor requires it before you can start work.
- Skipping required coverage is costly. New Hampshire can fine you, take you to court to shut the business down, and charge purposeful violations as a felony.
- You buy on the open market. New Hampshire has no state fund, so private carriers compete for your business, with an assigned risk plan as the backstop if you are hard to place.
What New Hampshire actually requires
Only a couple of these are true legal mandates. The rest get required by the people you do business with, which in practice is just as binding.
| Coverage | Required by New Hampshire law? | Who needs it | What is at stake |
|---|---|---|---|
| Workers compensation | Yes, RSA 281-A:5, once you have employees | Every employer with one or more employees | Fines, a court order to stop operating, felony exposure |
| Commercial auto | Yes, if you own or use business vehicles | Any business-owned or leased vehicle | Registration problems, uninsured liability |
| General liability | No state mandate | Required by most leases, clients, and general contractors | Lost contracts, blocked from a job site |
| Professional liability (errors and omissions) | No state mandate | Consultants, tech, design, and accounting firms, often by contract | Uncovered claims, lost contracts |
| Commercial property or a package policy | No state mandate | Anyone with a space, inventory, or equipment; landlords often require it | Out-of-pocket losses, lease default |
What business insurance costs in New Hampshire
These are illustrative annual ranges for small New Hampshire businesses, not quotes. Your real price depends on payroll, revenue, claims history, and the exact kind of work. New Hampshire workers comp prices have been trending down: the state approved an average 6.1 percent cut in voluntary loss costs effective January 1, 2026, the latest in a long run of reductions.
| Business type | Workers comp (est.) | General liability (est.) | Package policy (est.) |
|---|---|---|---|
| Office or professional services | 600 to 2,400 dollars | 500 to 1,900 dollars | 1,100 to 3,600 dollars |
| Restaurant or cafe | 2,500 to 10,000 dollars | 1,400 to 5,000 dollars | 4,000 to 14,000 dollars |
| Landscaper or small contractor | 3,500 to 14,000 dollars | 1,100 to 4,000 dollars | Usually separate policies |
| Cleaning or janitorial | 3,000 to 11,000 dollars | 800 to 3,200 dollars | Usually separate policies |
| Retail store | 1,200 to 5,000 dollars | 800 to 3,000 dollars | 2,200 to 8,000 dollars |
The 14 workers comp questions New Hampshire owners ask
Workers comp is where most of the confusion and most of the risk live, so we wrote a plain-English guide for every common situation. Start with the New Hampshire workers comp overview, then jump to the one that matches your business:
- I own an LLC
- I am a sole proprietor
- I own a corporation (C-corp or S-corp)
- We are a partnership
- We are a nonprofit
- My workers are 1099 contractors
- I only have part-time or seasonal staff
- I only employ family members
- My team is remote or out of state
- What happens if I do not have it
- How much it costs
- How to get it, even if I have been turned down
- What I need for a contractor license
A Manchester example
Illustrative, not a quote. A four-person general contractor in Manchester runs the business as an LLC with two members and two field employees. Because the LLC has non-owner employees, New Hampshire requires a policy, and the two employees must be covered from their first day. New Hampshire also does not let a construction business exclude an owner who works on-site, so any member who does hands-on work on the job must be covered too; only a member who sticks to the office and does no on-site construction work could be left off the policy. When a builder they want to work for requires proof of coverage, the LLC already has a policy and can produce a certificate the same day. See the trade detail on our workers comp for contractors page.
Real questions New Hampshire owners ask
Do I need workers comp for my New Hampshire business?
If you have any employees, yes. New Hampshire requires coverage once you have one or more employees under RSA 281-A:5, with no minimum headcount and no exception for part-time or seasonal staff.
I just hired my first employee in New Hampshire. Do I need it right away?
Yes. New Hampshire requires workers comp as soon as you have even one employee, full or part time, with no waiting period and no minimum headcount. Put a policy in place before that person starts work.
Do I have to cover myself as the owner?
Usually not by default. A sole proprietor or partner is not required to cover their own injuries and may elect to. A corporation or LLC with three or fewer owners and no other staff is not required to carry, though it may choose to.
Is general liability insurance required in New Hampshire?
The state does not make general liability mandatory for most businesses, but landlords, clients, and general contractors almost always require it before they will sign with you, so in practice you usually need it.
What happens if I skip workers comp?
New Hampshire can fine you up to 2,500 dollars plus up to 100 dollars per employee for each day you go without, take you to court to stop your business, and charge a purposeful violation as a felony.
Does New Hampshire have a state workers comp fund?
No. New Hampshire has no state fund. You buy from private carriers on the open market, and if no carrier will take you, an assigned risk plan run by the rating bureau NCCI is the guaranteed backstop.
I am based out of state with a worker in New Hampshire. Do I need coverage here?
Generally yes. With an employee working in New Hampshire you usually need New Hampshire coverage for them, no matter where your company is based. We can add New Hampshire to your policy or write a separate one.
Why New Hampshire owners choose Morrow
- We shop the right market for you. In New Hampshire you buy workers' comp on the open market from any private carrier licensed in the state, because there is no state fund, and if no carrier will take you the NCCI-run assigned risk plan is the guaranteed fallback, so we can shop your rate freely and still have a backstop for hard-to-place work.
- We catch pricing mistakes. Your price depends heavily on the category your work falls into for pricing (the class code). Put people in the wrong category and you overpay for years. We review your payroll and classifications before you buy.
- Proof of coverage, fast. Need a certificate (proof of coverage) for a general contractor or a landlord before Monday? We turn those around the same business day for most carriers.
- We help lower the score that drives your price. Insurers give you a score based on your past claims that raises or lowers your cost (the experience modification rate). We review it each year, flag errors, and connect you with return-to-work and safety resources that bring it down.
- Real people when a claim happens. When someone gets hurt, we stay involved through the life of the claim, not just at renewal.
Related New Hampshire guides
Every New Hampshire business is set up a little differently. These companion guides answer the same question for other situations, plus the national explainers behind the terms used here.
- Business insurance in New Hampshire (start here)
- Workers comp: the owner's overview
- I own an LLC: do I need workers comp?
- I'm a sole proprietor: do I need workers comp?
- I own a corporation (C-corp or S-corp): do I need it?
- We're a partnership: do we need workers comp?
- We're a nonprofit: do we need workers comp?
- My workers are 1099: do I still need it?
- Only part-time or seasonal staff: do I need it?
- I only employ family: do I need workers comp?
- Remote or out-of-state staff: do I need coverage?
- What happens if I don't carry workers comp?
- How much does workers comp cost?
- How do I get workers comp (even if turned down)?
- What insurance do I need for a contractor license?
- Workers compensation insurance, explained
- What workers comp costs (national guide)
- Hiring your first employee: what changes
- What workers comp does not cover
- New Hampshire contractor workers comp
This guide is general information, not legal advice. New Hampshire rules and penalty amounts can change, so verify current requirements with New Hampshire Department of Labor, Workers' Compensation Division or a licensed advisor before you rely on them. Last updated: July 2026.