If your business is a New Hampshire corporation, a C-corp or an S-corp, whether it must carry workers compensation depends on how many officers it has and whether it employs anyone else. A corporation with three or fewer executive officers and no other employees is not required to carry a policy, though it may elect one. Once there is a fourth officer, or any non-owner employee, coverage becomes mandatory under RSA 281-A:5. Even then, the corporation can file to exclude up to three officers from the policy, while every actual employee must be covered.
Who this is for: Owners, officers, and directors of a New Hampshire corporation, from a small S-corp with a few employees to a closely held company whose owners draw a salary.
The short version
- A corporation with three or fewer executive officers and no other staff is not required to carry workers comp, but may elect it; in construction, officers who do on-site work must be covered.
- A fourth officer, or any non-owner employee, makes coverage mandatory.
- When the corporation carries a policy, it may file to exclude up to three officers under RSA 281-A:18-a, though an officer who does on-site construction work cannot be excluded and must be covered.
- Regular W-2 employees are always covered; the exclusion choice applies only to executive officers.
- The corporate form shields shareholders from many debts, but not from an injured worker without a policy.
How officers and employees are treated
New Hampshire counts executive officers toward a small ceiling rather than treating them as automatic employees. A corporation with three or fewer executive officers and no other employees is not required to carry coverage at all, though it may elect a policy to insure the officers. The rule flips once there is a fourth officer or any non-owner employee: the corporation must carry coverage. At that point it can still leave up to three officers off the policy by filing an exclusion under RSA 281-A:18-a, done through the agent and carrier by giving each excluded officer's name, title, and details to the Department of Labor. In the construction trades, though, an officer who works on-site cannot be excluded and must be covered, and an owner-only construction corporation whose officers work on-site cannot use the three-or-fewer shortcut to skip a policy. Rank-and-file employees are never part of this choice; they are covered whenever the corporation is required to carry.
Covered, excluded, or optional
| Who or what | Coverage position | Notes |
|---|---|---|
| Corporation with three or fewer officers, no other staff | Not required, unless the officers do on-site construction work | May elect a policy to cover the officers; construction officers who work on-site must be covered |
| Corporation with a fourth officer or any employee | Required | A policy is mandatory under RSA 281-A:5 |
| Executive officer on a required policy | Covered unless excluded | Up to three officers may be excluded under RSA 281-A:18-a, but not an officer who does on-site construction work |
| W-2 employee | Covered | Employees are always covered; they cannot be excluded |
Why carrying a policy keeps you out of court
The corporate form shields shareholders from many business debts, but it does not by itself answer an injured worker. If the corporation carries no comp when required, an injured employee can sue in civil court, where the employer loses the usual defenses that the worker was careless, knew the risk, or was hurt by a co-worker. A purposeful failure to secure coverage is also a class B felony, and an officer who controls the money can be held personally liable. Carrying a policy makes comp the employee's main remedy, which generally blocks that lawsuit. For a closely held corporation whose owners also work in the business, that protection often matters as much as the medical and wage benefits themselves.
A Portsmouth example
Illustrative, not a quote. A Portsmouth HVAC company is an S-corp with two owner-officers and six field technicians. Because it has non-owner employees, New Hampshire requires a policy. The two officers work only in the office and do no on-site installation or service work, so the company may file to exclude them under RSA 281-A:18-a and keep the six technicians covered, since their rooftop and attic work carries real injury risk. If either officer went out on install or service calls, that on-site construction work would bar the exclusion and the officer would have to be covered. When a technician falls from a ladder, the injury is covered and the company keeps its legal protection. The owners ask us to confirm the technicians are rated on the correct kind of work so the premium is not inflated. See our workers comp for HVAC contractors page.
Real questions New Hampshire owners ask
Does my New Hampshire corporation have to carry workers comp?
It depends. A corporation with three or fewer executive officers and no other staff is not required to carry, though it may elect a policy. A fourth officer or any non-owner employee makes coverage mandatory.
Am I covered as an owner-officer?
Only if the corporation carries a policy and does not exclude you. An owner-only corporation with three or fewer officers can skip coverage, or elect to insure the officers if it wants that protection.
Can I take myself off the policy as an officer?
Yes, within limits. When the corporation carries a required policy, it can file to exclude up to three executive officers under RSA 281-A:18-a. Beyond three, the remaining officers stay covered. In construction, an officer who works on-site cannot be excluded and must be covered.
When does my corporation have to carry coverage?
Once it has a fourth executive officer, or any non-owner employee. Below that, a corporation with three or fewer officers and no other staff is not required to carry, though it may choose to, unless it is a construction business whose officers work on-site, who must be covered.
Are my regular employees covered if I have a policy?
Yes. W-2 employees are always covered by the corporate policy and cannot be excluded. The exclusion choice under RSA 281-A:18-a applies only to executive officers, not to rank-and-file staff.
Does incorporating protect me from an injured worker?
Not by itself. The corporate form shields shareholders from many debts, but an injured employee is a separate exposure. Without required comp, the corporation can be sued and loses its usual defenses.
Should I put myself on the policy or file to exclude?
It depends on whether you do hands-on work and want your own injuries covered. If you mainly run the office and do no on-site construction work, excluding yourself lowers the premium; if you do on-site or hands-on work, staying on the policy covers you, and in construction an officer who works on-site cannot be excluded and must be covered.
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?
- 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)
- Workers comp vs employers liability
- What workers comp does not cover
- New Hampshire HVAC 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.