If you run a business and have employees, you’ll need to purchase New Hampshire workers’ compensation insurance. In fact, this type of insurance is a requirement in most states, including New Hampshire, with some exceptions. It helps pay your employees’ medical bills if they sustain an injury on the job. And limits your liability for workplace accidents, is a requirement in most states, including New Hampshire, with some exceptions.
In New Hampshire, the cost of workers’ compensation insurance is around $1.03 for every $100 of covered payroll. That means, for instance, if your business’s annual payroll is $100,000, workers’ compensation insurance would cost you $1,030 per year, or roughly $85 a month. These rates can vary, though, based on a number of factors.
One of the biggest factors in determining your rates for workers’ compensation insurance is your employees’ risk, or the likelihood of a workplace injury occurring at your business. To assist insurers in determining risk exposure, and to get the best rates for your business, you can use a variety of workers’ compensation class codes. This is important because it costs more to insure certain employees. For example, office employees may have lower workers’ compensation costs than those who work outside of your office and face more risks.
If an employee sustains an injury on the job or becomes ill due to workplace conditions, workers’ compensation in New Hampshire will help them with their medical bills. The average weekly wage of the employee determines the workers’ compensation benefits. The amount depends on the type of claim.
In general, workers’ compensation in New Hampshire covers:
- Accidents and injuries – If your employee needs medical attention, workers’ compensation will cover any medical expenses from a workplace injury.
- Illness – If an employee becomes sick from exposure to allergens or other hazardous materials at work, they can also receive workers’ comp benefits to help pay for treatment.
- Repetitive injury – It’s not just accidents that are covered: treatment for repetitive injuries, like carpal tunnel syndrome, are also covered by workers’ compensation.
- Ongoing care – If your employee still has medical needs as a direct result of their accident or illness, even after they return to work, they can get benefits for ongoing care. This includes additional doctor’s appointments or additional surgeries.
In addition, if their accident or illness results in permanent or temporary disability, your employee will receive weekly or lump sum payments. If they have a temporary disability, their injury prevents your employee from performing their job. But they can return to work as normal once they recover. If a doctor diagnoses them with an injury from which they will not fully recover, they have a permanent disability.
These categories fall into the following classifications:
- Temporary total disability (TTD) – These payments will be made if your employee is not able to work at all while recuperating.
- Temporary partial disability (TPD) – TPD payments will be made if your employee can still work, but only with certain limitations, such as needing to perform lighter duties or work fewer hours. If your company does not provide work that meets these requirements, the employee may still be eligible for these payments.
- Permanent total disability (PTD) – Employees who are unable to work due to an accident or illness, even after they have recovered as much as they are likely to, will be eligible for PTD payments.
- Permanent partial disability (PPD) – Employees who have permanent difficulties but can work with them will be eligible for PPD.
New Hampshire’s Workers’ Compensation Death Benefits
If an employee dies from a work-related accident or illness, their surviving dependents will be eligible for workers’ comp death benefits. These benefits include:
- Burial expenses not to exceed $10,000
- Weekly compensation
Surviving dependents include:
- Children under the age of 18
- Children under the age of 22 who are a full-time students
- Children of any age who are unable to support themselves
If the worker has no spouse or children, benefits could be awarded to their dependent parents or minor siblings, as well as other family members who were dependent on the person for financial support.
New Hampshire’s Workers’ Compensation Laws
All employers have to carry workers’ compensation insurance under New Hampshire law. Workers’ compensation benefits begin on the fourth day of disability. The three-day waiting period is waived if:
- The disability lasts for at least 14 days
- They return to a temporary, alternative job within five days
In general, an injured employee will be reimbursed an amount that is equal to 60% of their average weekly salary. Their average weekly salary will be determined by adding up their gross earnings from the 26 to 52 weeks prior to the injury and dividing that amount by the number of weeks. If they haven’t been employed for at least 26 weeks, their starting salary will be used to determine their weekly reimbursement.
Exceptions to the workers’ comp law include individuals who work for themselves as self-employed, partners, or contractors. If you are in this category, though, you can choose to buy workers’ comp. Doing so is advisable, given the high cost of medical expenses, especially for high-risk occupations.
In addition, subcontractors who have no employees may need to purchase insurance if required to do so by their general contractor.
And, as long as their company has no more than three executives, officers of corporations and members of LLCs are excluded from workers’ comp requirements. However, workers’ compensation insurance is necessary as soon as a fourth executive or LLC member enters the company.
How to Buy Workers’ Compensation Insurance
In New Hampshire, most businesses buy workers’ compensation insurance from a private insurance company. EZ’s agents can help you compare insurers and policies to find the best coverage for you.
If your business’s high-risk status (for example, if you have a lot of previous claims) prevents you from getting coverage through the voluntary market, you can get coverage from the New Hampshire assigned risk pool. As the state’s last-resort supplier of workers’ compensation, the National Council on Compensation Insurance (NCCI) oversees the assigned risk insurance pool in New Hampshire.
Self-insuring your workers’ compensation claims is the last remaining option for fulfilling your requirement for workers’ compensation insurance. This means that instead of paying premiums and submitting workers’ compensation claims to an insurance company, your business will handle the payouts out-of-pocket.
In order to become self-insured, you must first submit an application to the New Hampshire Workers’ Compensation Division. You’ll also need to:
- Provide a financial guarantee such as a surety bond
- Purchase excess insurance coverage for claims that exceed your guarantee amount
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How to Get the Most Savings
The majority of the cost of workers’ compensation comes from factors beyond your control. However, there are still ways to save. Implementing a safety program is a great way to reduce workplace injuries and claims, which will lower your premiums. So regardless of your industry, it is important to have safety and standard operating procedures in place. Employees who have safety training are less vulnerable to injuries, lowering your workers’ compensation costs.
It is also a good idea to regularly review your claims history. Evaluating your claims history on a regular basis can help you identify and correct patterns. You might discover that certain aspects of your business operations are frequently causing claims. This allows you to adjust the operation to make it safer. You can save money by keeping an eye on potentially dangerous operations.
Correctly classifying your employees is one of the most effective ways to save money. When you apply for your workers’ compensation policy, you will classify each of your employees depending on their job’s risk. And this risk classification influences the cost of your workers’ compensation. For example, you might pay less to insure an office worker than you would a manual laborer. It’s also important to correctly classify your employees because you may receive a fine if you fail to do so.
Begin a free online application today to compare workers’ compensation insurance quotes for your small business from leading U.S. insurers. EZ’s agents specialize in insurance for a wide range of small businesses. Working with our agents can save you hundreds of dollars a year on coverage.
New Hampshire Workers’ Compensation FAQs
Are you required to have workers’ compensation insurance in New Hampshire?
The law requires any business with employees to carry worker’s compensation insurance in your state unless otherwise exempt. Breaking workers’ compensation laws in New Hampshire is not taken lightly. You can face a one-time fine of $2,500 and a fine of $100 per employee for each day you fail to carry coverage. If you continue to violate the state’s workers’ compensation regulations, the state may also suspend your ability to conduct business there.
How do workers’ compensation settlements work in New Hampshire?
A settlement is an arrangement between the worker, employer, and insurer that settles a workers’ compensation claim. Both the employee and the employer benefit from settling workers’ comp claims.
To reach a settlement, the claimants must agree on a lump sum payout, including the employee, the business, and the insurer. The employee must consent to the suspension of future benefit payments in exchange for the payout.
New Hampshire Workers’ Compensation Division must give approval before an employee agrees to accept a lump sum payment in lieu of future payments.
What is the statute of limitations in New Hampshire?
Employees in New Hampshire have two years from the date of the accident or illness to make a workers’ compensation claim.
The employee must submit a claim as soon as they become aware of the issue in circumstances where an injury or illness developed gradually.
Why Use EZ
We do everything in our power to make shopping for workers’ compensation insurance as easy and stress-free as possible. And we give each of our customers our undivided attention. As soon as you fill out our form, you will receive instant, free quotes from your dedicated agent. Who will give you personalized service and will work to understand your needs. We want to ensure that you get the best coverage at the best price. Our services are completely free so check out your quotes today!
If you still have questions, feel free to give us a call at 877-670-3538. You will speak to a local insurance agent who can answer all of your questions. And help you find the workers’ compensation policy that works best for your business.