If your New Hampshire LLC has any non-owner employees, yes, it must carry workers compensation insurance, because New Hampshire requires coverage once you have employees under RSA 281-A:5. If it is only members with no other staff, an LLC with three or fewer members is not required to carry a policy, though it may elect one. Add a fourth member, or any employee, and coverage becomes mandatory. The number of members is what changes the rule, not just your payroll.
Who this is for: Owners of a New Hampshire LLC, whether a single-member LLC with no staff, a multi-member LLC, or an LLC running a payroll of W-2 employees.
The short version
- An LLC with any non-owner employee must carry workers comp; there is no headcount threshold once employees exist.
- An LLC with three or fewer members and no other staff is not required to carry, but may elect coverage.
- A fourth member, or any non-owner employee, makes a policy mandatory.
- When the LLC carries a policy, it may file to exclude up to three members under RSA 281-A:18-a, while employees stay covered, though a member who does on-site construction work cannot be excluded and must be covered.
- Clients and general contractors routinely require proof of coverage before your LLC can start work.
How New Hampshire treats LLC members
New Hampshire does not treat an LLC member the way it treats a regular employee. A member of an LLC with three or fewer members and no other employees is not required to be covered, and the LLC is not required to carry a policy at all, though it may choose to insure the members. Once there is a fourth member or any non-owner employee, the LLC must carry coverage. At that point, the LLC can still file to leave up to three members off the policy under RSA 281-A:18-a, which it does through its agent and carrier by giving each excluded member's name, title, and details to the Department of Labor. One limit matters for the trades: a member who does hands-on work at a construction site cannot be excluded and must stay covered, so this option is only open to members who do no on-site construction work, and a construction LLC whose members all work on-site cannot rely on the three-or-fewer shortcut either. So the practical question is how many members you have, whether you employ anyone else, whether any of them does on-site construction work, and whether you want the members on the policy.
What applies to your LLC
| Your LLC setup | Is comp required? | What owners and staff should know |
|---|---|---|
| Single-member, no employees | No | Not required; you may elect to cover your own injuries |
| Two or three members, no other staff | No | Not required; the LLC may elect coverage for the members |
| Four or more members, no other staff | Yes | Mandatory; up to three members may be excluded under RSA 281-A:18-a, but not a member who does on-site construction work |
| Any LLC with non-owner employees | Yes | Employees covered from day one; up to three members may be excluded, except a member who does on-site construction work |
Electing coverage, or filing to exclude
Because members are not automatically on the policy, an owner-run LLC gets to decide. If you want your own on-the-job injuries paid by comp, you elect to include the members. If you would rather keep member pay out of the premium, you file the exclusion for up to three of them, as long as none of those members does on-site construction work, and rely on other coverage for your own injuries. A member who works on-site at a construction job cannot be excluded and must be covered. Many owner-run LLCs that hire staff keep only the employees on the policy, which lowers the premium while still protecting the business from an employee-injury lawsuit. The limited liability in an LLC shields your personal assets from many business debts, but it does not by itself answer an injured employee, which is exactly what comp is built to handle.
A Concord example
Illustrative, not a quote. A two-member electrical contracting LLC in Concord runs the business with one W-2 apprentice. Because the LLC has a non-owner employee, New Hampshire requires a policy. Both members work in the field pulling wire, which is on-site construction work, so New Hampshire does not let them exclude themselves; all three, the two members and the apprentice, must be covered. 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. If a member or the apprentice is hurt pulling wire, the injury is covered and the LLC keeps its legal protection. We make sure the electrical work is rated correctly so the price is fair. See our workers comp for electricians page.
Real questions New Hampshire owners ask
Does my New Hampshire LLC have to carry workers comp?
If it has any non-owner employees, yes. If it is only members, an LLC with three or fewer members is not required to carry, though it may elect coverage. A fourth member or any employee makes it mandatory.
Am I covered as an LLC member?
Only if the LLC carries a policy and includes you. Members are not automatically covered. An owner-only LLC with three or fewer members can skip coverage, or elect to insure the members if it wants.
Do I need comp for a single-member LLC with no employees?
No. With no employees and just you, New Hampshire does not require a policy. You may elect to cover your own on-the-job injuries if you want that protection, but it is optional.
When does my LLC have to carry coverage?
Once it has a fourth member, or any non-owner employee. Below that, an LLC with three or fewer members and no other staff is not required to carry, though it may choose to.
How do I leave myself off the policy as a member?
The LLC files to exclude you under RSA 281-A:18-a, through your agent and carrier, giving your name, title, and details to the Department of Labor. Up to three officers or members can be excluded this way. One catch for the trades: if you do on-site construction work, you cannot be excluded and must be covered.
Does having W-2 employees change things for my LLC?
Yes. Even one non-owner employee makes coverage mandatory from day one. The policy covers your employees and protects the LLC, so an injured worker generally cannot sue the business directly.
Why do clients ask my LLC for proof of coverage?
General contractors, landlords, and commercial customers require proof to manage their own risk. Even when you have covered everyone required, you usually cannot start the job without showing a certificate.
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'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)
- Do sole proprietors need workers comp?
- What workers comp does not cover
- New Hampshire electrician 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.