If your New Hampshire nonprofit has any paid employees, yes, it must carry workers compensation insurance from the first one under RSA 281-A:5. Being a tax-exempt charity does not change the rule; a nonprofit is an employer like any other. Unpaid volunteers who receive no wages generally are not employees, because New Hampshire's rule turns on performing service for pay, so an all-volunteer group often has no one it is required to cover.
Who this is for: Directors and operators of New Hampshire nonprofits, from an all-volunteer group to a charity with paid program and administrative staff.
The short version
- A New Hampshire nonprofit with even one paid employee must carry workers comp; there is no headcount minimum.
- Tax-exempt status does not change this; the requirement applies to nonprofits like any employer.
- Unpaid volunteers who receive no wages are generally outside the paid-employee definition.
- Grants, government contracts, and building leases frequently require proof of coverage on top of the law.
- Going without required coverage exposes the nonprofit to fines, a court order to stop, and lawsuits.
Employees, volunteers, and coverage
Workers comp covers employees, so the first question for a nonprofit is who is actually on payroll. New Hampshire's rule turns on whether a person performs service for pay, so an unpaid volunteer who receives no wages generally is not an employee. Once the nonprofit hires paid staff, coverage is required from the first employee, the same as for a for-profit business. If a volunteer receives a stipend or other pay for their service, check that arrangement with the Department of Labor, since pay for service is what the rule looks at. If you want volunteers protected regardless, that is usually handled through other coverage, such as volunteer accident insurance, rather than workers comp.
What drives coverage for a nonprofit
| Situation | Is comp required? | Notes |
|---|---|---|
| All-volunteer, no paid staff | Usually no | Unpaid volunteers generally are not employees |
| Any paid program or admin staff | Yes | Required from the first paid employee |
| Receives a government grant or contract | Yes if staffed, plus a funder requirement | Funders commonly require proof of coverage on top of the law |
| Leases program space | Yes if staffed, plus a lease requirement | Commercial leases frequently require a policy |
The risk of going without
A nonprofit that skips required coverage faces the same enforcement as any New Hampshire employer. If a paid employee is injured and the organization carries no comp, the state can fine it up to 2,500 dollars plus up to 100 dollars per employee for each day it was uninsured, and can go to court to halt the organization. The injured worker can also sue, with the nonprofit's usual defenses removed, and a judgment comes straight out of the mission's budget. Carrying comp makes it the employee's main remedy and generally blocks the lawsuit, which is why a nonprofit with paid staff always insures them.
A Concord example
Illustrative, not a quote. A Concord youth-services nonprofit runs mostly on volunteers but employs two paid program coordinators. Because those coordinators are employees, New Hampshire requires coverage for them, and a city grant separately requires proof of it, so the nonprofit buys a policy. The volunteers are handled through separate accident coverage. When a coordinator trips carrying supplies at an event, comp pays the medical bills and the nonprofit keeps its legal protection instead of facing a claim against its grant-funded budget. We help the organization rate its clerical and program payroll correctly so the premium fits a small staff. See our workers comp for nonprofits page.
Real questions New Hampshire owners ask
Does my New Hampshire nonprofit have to carry workers comp?
If it has any paid employees, yes, from the first one. A nonprofit is an employer like any other. An all-volunteer group with no paid staff usually has no one it is required to cover.
Does tax-exempt status change the workers comp rules?
No. Being a tax-exempt nonprofit does not change the requirement. A charity with paid staff must carry coverage on the same first-employee basis as a for-profit business.
Do we need comp if we only have volunteers?
Usually not. New Hampshire's rule turns on performing service for pay, so an unpaid volunteer who receives no wages generally is not an employee, and an all-volunteer group often has no one to cover.
Can we cover our volunteers with workers comp?
Generally not, because comp covers paid employees. To protect volunteers, nonprofits usually add separate coverage, such as volunteer accident insurance, rather than relying on a workers comp policy.
What if a volunteer receives a stipend?
That can change the answer. Because the rule looks at pay for service, a stipend or other pay may make someone an employee. Check the arrangement with the Department of Labor before assuming they are exempt.
Why do grants require workers comp?
Funders and government contracts require proof of coverage to protect themselves and the people the program serves. In New Hampshire a nonprofit with paid staff already needs it by law, and the grant confirms it.
What happens if our nonprofit skips coverage and a staffer is hurt?
The organization can be fined, taken to court to stop operating, and sued with its usual defenses removed. A judgment would come out of the mission's budget, on top of the state penalties for being uninsured.
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?
- 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 nonprofit 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.