If you have even one employee in New Hampshire, yes, you need workers compensation insurance. New Hampshire requires every employer to carry it once they have one or more employees under RSA 281-A:5, with no minimum headcount, no payroll minimum, and no exception for part-time, seasonal, or family workers. The real questions are how owners are treated and how to buy it, not whether the rule reaches an ordinary employer.
Who this is for: Any New Hampshire employer, from a brand-new business making its first hire to an established company double-checking the rules for its mix of staff.
The short version
- Coverage is required once you have employees; there is no headcount trigger and no payroll minimum.
- Part-time, seasonal, and temporary workers all count, and there is no general family-member exception.
- Owners are handled differently: a sole proprietor or partner is out unless they elect in, and a corporation or LLC with three or fewer owners and no other staff is not required to carry, though construction owners who do on-site work cannot be left off and must be covered.
- Once a business has a fourth owner, or any non-owner employee, a policy becomes mandatory.
- New Hampshire has no state fund, so you buy from a private carrier, with an assigned risk plan as the backstop.
Who counts as an employee
New Hampshire defines an employee broadly: almost anyone who performs service for pay for a private employer is presumed to be an employee, and coverage attaches once you have one. Hours, season, and family relationship do not change that.
| Worker type | Counts toward the mandate? | Notes |
|---|---|---|
| Full-time W-2 employee | Yes | Coverage required from day one |
| Part-time or seasonal worker | Yes | No hours or headcount exception |
| Family member you employ | Yes | No general family carve-out in RSA 281-A |
| Business owner (sole proprietor or partner) | No, unless they elect in | May choose to cover their own injuries |
| A genuine independent contractor | No | Only if they pass New Hampshire's strict multi-part control test |
How New Hampshire treats business owners
Owners are the one place the answer changes with your structure. A sole proprietor or partner is not counted as their own employee, so they are not required to carry coverage on themselves, though they may elect to include themselves under RSA 281-A:3. A corporation or LLC with three or fewer executive officers or members and no other employees is not required to carry a policy either, but may elect one. The moment there is a fourth officer or member, or any non-owner employee, coverage becomes mandatory. Even then, the business may file to exclude up to three of its officers or members from the policy under RSA 281-A:18-a, while every actual employee stays covered. One important limit applies to the trades: a construction business cannot exclude an owner who works on-site, so a working officer or member at a construction site must be covered, and an owner-only construction firm whose owners do on-site work cannot use the three-or-fewer shortcut to skip coverage.
Why the rule has teeth
New Hampshire backs the mandate hard. An employer found working without required coverage can be fined up to 2,500 dollars plus up to 100 dollars per employee for each day of noncompliance, and the Commissioner of Labor can go to superior court to restrain the business from operating in the state. A purposeful failure to secure coverage is a class B felony, and a person who controls the money and knowingly skips coverage can be held personally liable. On top of that, an injured worker at an uninsured business can sue and strip away the employer's usual legal defenses.
A Nashua example
Illustrative, not a quote. A Nashua cafe owner hires two counter staff and one part-time weekend baker and assumes part-timers might not count until she has more of them. In New Hampshire they count from the first one, so she needs a policy right away. She puts coverage in place before anyone starts, and when the weekend baker burns a hand on a hot tray, comp pays the medical bills and part of the lost wages. Because she was insured, the injury is handled as a comp claim rather than a lawsuit, and we make sure her cafe payroll is rated on the right kind of work.
Real questions New Hampshire owners ask
Is workers comp legally required 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. There is no minimum headcount, no payroll minimum, and no part-time or seasonal exception.
How many employees before I need workers comp in New Hampshire?
One employee is enough. New Hampshire attaches the requirement to your first employee, so there is no number you can stay under. A single part-time or seasonal hire makes coverage mandatory.
Do part-time or seasonal workers count in New Hampshire?
Yes. Part-time, seasonal, and temporary workers are all employees for coverage. New Hampshire does not exempt them, so you cannot avoid the requirement by keeping people part-time.
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 but may elect to. A corporation or LLC with three or fewer owners and no other staff is not required to carry, though it may. In construction, owners who do on-site work are the exception and must be covered.
What if my workers are independent contractors?
A label does not settle it. New Hampshire presumes a worker is an employee and uses a strict multi-part control test, not the simpler ABC test. A misclassified worker who gets hurt can leave you exposed.
When does coverage become mandatory for my company?
The moment you have a non-owner employee, or a fourth officer or member in a corporation or LLC. Below that, an owner-only business with three or fewer owners can choose whether to carry a policy, unless it is a construction business whose owners work on-site, who must be covered.
What happens if I do not carry it?
New Hampshire can fine you up to 2,500 dollars plus up to 100 dollars per employee per day, take you to court to stop the business, and charge a purposeful violation as a felony. An injured worker can also sue you.
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)
- 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 restaurant 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.