As a New Hampshire sole proprietor with no employees, you are generally not required to carry workers compensation insurance, and you are not your own employee, so no coverage is forced on you. The moment you hire anyone, though, New Hampshire requires a policy for that worker under RSA 281-A:5. You can choose to cover your own on-the-job injuries by electing to include yourself under RSA 281-A:3, but that is an option, not a requirement.
Who this is for: New Hampshire sole proprietors, from a solo cleaner or handyman with no staff to a sole proprietor who takes on a helper or two.
The short version
- With no employees, a sole proprietor is not required to carry comp and is not automatically covered.
- You may elect to cover yourself under RSA 281-A:3 by having your inclusion written into a policy.
- Hiring even one worker triggers the mandate, and that worker must be covered from day one.
- A sole proprietor has no corporate shield, so an uninsured injury can reach your personal assets.
- Clients and general contractors often require proof of coverage even when the law does not.
Covering yourself is a choice
A sole proprietor is outside the workers comp system by default. You are not counted as your own employee, so nothing forces you to insure your own injuries. If you want that protection, you elect in under RSA 281-A:3 by having your inclusion written into a policy. Many solo owners weigh this against their health insurance, but keep in mind that comp also replaces lost wages and covers work injuries that a health plan may exclude, which is a gap health coverage alone does not fill.
When it is just you vs when you hire
| Your situation | Is comp required? | What to weigh |
|---|---|---|
| Solo, no employees, no client requirement | No | Optional; it would insure your own injuries if you elect in |
| Solo, but a client or GC requires proof | No by law, yes by contract | You need a policy to take the job; decide whether to include yourself |
| You hire a helper or two | Yes | Every employee must be covered from their first day |
| You subcontract to another business | Depends | An uninsured sub's injured workers can become your responsibility |
What changes the day you hire
Hiring your first worker flips the switch: New Hampshire now requires coverage for that employee, with no grace period. It also raises your exposure sharply. If your helper is hurt and you carry no coverage, the state can fine you up to 2,500 dollars plus up to 100 dollars per employee for each day you were uninsured, and the worker can sue you with your usual legal defenses removed. A sole proprietor has no corporate shield, so a judgment can reach your personal savings, home, and other assets. That is why solo owners who add even one employee buy a policy, often electing to add themselves back in.
A Dover example
Illustrative, not a quote. A Dover house cleaner works alone and skips workers comp because the law does not require it for a one-person business. She wins a recurring contract with a property manager who requires proof of coverage, so she buys a policy and elects to include herself, since she does the physical work and wants her own injuries covered. That spring she hires a part-time helper. Because New Hampshire now requires coverage for that employee, and an uninsured injury could become a lawsuit reaching her personal assets, she keeps the policy and adds the helper, and we rate the cleaning work correctly so she is not overpaying. See our workers comp for cleaners page.
Real questions New Hampshire owners ask
Do I need workers comp as a New Hampshire sole proprietor?
With no employees, generally no. You are not your own employee, so nothing forces you to insure yourself. The moment you hire anyone, coverage is required for that worker from day one.
Am I covered by workers comp if I do not have employees?
Not automatically. A sole proprietor is outside the system by default. You can elect to include yourself under RSA 281-A:3 by having your inclusion written into a policy if you want that protection.
Should I include or exclude myself as the owner?
It depends on whether you want your own on-the-job injuries paid by comp. Including yourself covers you but adds your pay to the premium. Leaving yourself off lowers the premium but relies on other coverage.
Does hiring one helper make comp required?
Yes. New Hampshire has no headcount threshold, so your first employee makes coverage mandatory. Even a single part-time helper must be covered from their first day of work.
Can an injured worker reach my personal assets?
As a sole proprietor you have no corporate shield, so a negligence judgment can reach your personal assets. Carrying comp makes it the worker's main remedy and generally blocks that lawsuit.
Do I need coverage if a client asks for it but I have no staff?
Not by law, but by contract. Many property managers and general contractors require proof of coverage before you can start. You can buy a policy and elect to include yourself to satisfy them.
Does my health insurance replace workers comp?
Not fully. Health insurance may pay some medical bills, but it does not replace lost wages the way comp does, and many health plans exclude work-related injuries. Comp is built for on-the-job harm.
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 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?
- Hiring your first employee: what changes
- New Hampshire cleaning 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.