In New Hampshire, failing to carry required workers compensation is illegal and carries some of the stiffest penalties of any state. If you have employees and no coverage, the state can fine you by the day, take you to court to shut the business down, and, for a purposeful violation, charge a felony, and an injured worker can sue you directly. This is not a paperwork violation; it is treated as a serious offense under RSA 281-A:7.
Who this is for: New Hampshire employers weighing the risk of going without coverage, and owners who have let a policy lapse and want to understand their real exposure.
The short version
- Being uninsured with employees exposes you to a fine of up to 2,500 dollars, plus up to 100 dollars per employee for each day you go without.
- The daily penalty runs from the first day of the violation and is capped at one year.
- The Commissioner of Labor can go to superior court to restrain and prohibit you from operating in New Hampshire.
- A purposeful failure to secure coverage is a class B felony, and a person who controls the money can be personally liable.
- An injured worker can sue you, and you lose the usual legal defenses that protect an insured employer.
The fines that stack by the day
New Hampshire does not treat going uninsured as a flat ticket. Under RSA 281-A:7, the civil penalty is up to 2,500 dollars, plus up to 100 dollars per employee for each day of noncompliance, counted from the first day of the violation and capped at one year. For a business with several employees, the per-day piece adds up quickly, because it multiplies by both your headcount and the number of days you went without a policy.
| Consequence | What it is | Rough exposure |
|---|---|---|
| Base civil penalty | A flat fine for failing to carry coverage | Up to 2,500 dollars |
| Per-day penalty | Added for each day you were uninsured | Up to 100 dollars per employee per day, capped at one year |
| Court order to stop | A superior court order restraining you from operating in the state | Business shut down until you comply |
| Criminal charge | Purposely failing to secure coverage | A class B felony |
| Personal liability | For a person who controls the money and knowingly skips coverage | You can be on the hook personally |
The court order and the criminal exposure
Beyond the fines, New Hampshire can stop your business. The Commissioner of Labor may go to superior court to restrain and prohibit an employer from conducting business in the state for as long as it fails to carry required coverage. Worse, a person, business, or corporate officer who purposely fails to secure payment of compensation is guilty of a class B felony, and any person with control over the decision to spend money and pay wages who knowingly skipped coverage can be held personally liable for the penalties. This is not just a company-level fine; it can reach the individual who made the call.
The lawsuit you can no longer defend
Carrying a policy is what makes comp the injured worker's main remedy and keeps a lawsuit off the table. Go uninsured, and an injured employee can pursue you in court free of the protections that normally shield an employer, which means you lose the usual defenses that the worker was careless, knew the risk, or was hurt by a co-worker. A single serious injury lawsuit, with those defenses stripped away, can cost far more than years of premium, on top of the fines and the risk of being shut down.
A Laconia example
Illustrative, not a quote. A Laconia roofing company lets its workers comp lapse to save money over a slow winter. A roofer falls and is seriously hurt while the policy is down. The company is fined the base penalty plus 100 dollars per employee for every day it went without, faces a superior court action to halt its crews, and defends a civil claim without the usual arguments, while the owner who chose to skip coverage faces personal exposure and a possible felony charge. The combined cost dwarfs the premium it skipped. After the claim, the owner reinstates coverage, and we place a policy and rate the roofing payroll correctly. See our workers comp for roofers page.
Real questions New Hampshire owners ask
Is it illegal to not have workers comp in New Hampshire?
Yes, if you have employees. Failing to carry required coverage violates RSA 281-A. The state can fine you by the day, take you to court to stop the business, and charge a purposeful violation as a felony.
What is the penalty for not having workers comp in New Hampshire?
Up to 2,500 dollars, plus up to 100 dollars per employee for each day you go without, from the first day and capped at one year. The state can also shut the business down and pursue criminal charges.
Can New Hampshire shut my business down for going uninsured?
Yes. The Commissioner of Labor can go to superior court to restrain and prohibit you from conducting business in the state for as long as you fail to carry required workers comp coverage.
Could I face criminal charges for skipping coverage?
Yes. A person, business, or officer who purposely fails to secure payment of compensation is guilty of a class B felony in New Hampshire. This goes beyond a civil fine to a serious criminal charge.
Can the penalties reach me personally?
They can. A person who controls the decision to spend money and pay wages and who knowingly skipped required coverage can be held personally liable for the penalties, not just the business.
Can I be sued if a worker is hurt and I have no coverage?
Yes. An injured worker can sue you in court, and because you were uninsured you lose the usual defenses that the worker was careless, knew the risk, or was hurt by a co-worker.
Is going without coverage cheaper than carrying it?
Only until something goes wrong. Skipping premium saves money short term, but the daily fines, a court order to stop, a felony charge, and a single injury lawsuit can cost far more than years of coverage.
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?
- 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 roofer 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.