The workers' compensation and employers liability policy (Part One statutory benefits, Part Two employers liability, payroll-and-class premium and experience rating) is covered in the national Workers' Compensation guide. New Hampshire's law is RSA 281-A. It's administered and enforced by the labor commissioner (Department of Labor), not the Insurance Department (281-A:2, 281-A:58). The Insurance Department regulates workers' comp insurers, rates, audits and the assigned risk plan under RSA 412 and RSA 404-C.

Who must have coverage

• Employers. An employer is anyone who employs one or more persons. Executive officers and LLC members aren't counted toward that number (281-A:2, VIII).
• Executive officers. Up to three executive officers or LLC members may be excluded, but only once the exclusion is properly filed with the commissioner (281-A:18-a).
• Sole proprietors who run their own business are covered only if they elect coverage.
• Independent contractors. A worker is presumed to be an employee unless they meet all the independent-contractor criteria (281-A:2, VI).
• Securing compensation (281-A:5). The employer insures with a licensed carrier and files evidence of coverage, or proves the financial ability to self-insure.
• Posting. The employer must post a notice that it operates under RSA 281-A. Each day without the notice is a separate violation.
• Household employees. Insurers writing homeowners-type policies must cover domestic employees for workers' comp unless the employer has a separate WC policy covering them (281-A:6).

Penalties for not insuring (281-A:7)

• Civil penalty: up to $2,500, plus up to $100 per employee per day, counted from the first day of noncompliance for up to one year. Responsible individuals can be held personally liable.
• Criminal: purposely failing to secure compensation is a class B felony.
• Injured employees of an uninsured employer may apply to the commissioner for compensation, or sue the employer free of the usual immunities.

The bargain

• Exclusive remedy (281-A:8). The employee gives up suits against the employer and its carrier. Suits against officers, agents and co-employees are also waived, except for intentional torts.
• What's covered. An injury must arise out of and in the course of employment (281-A:2, XI).
• Mental injuries. Stress without physical symptoms isn't covered, and neither is mental injury from discipline or a layoff. PTSD and acute stress disorder of emergency response and public safety workers are covered.
• Occupational disease must come from conditions characteristic of and peculiar to the job (281-A:2, XIII).

Notice and claim deadlines

Benefits

Insurance rules for workers' comp (RSA 412, 404-C)

• Assigned risk plan. An employer with an experience mod of 1.50 or higher loses any premium discount (404-C:5-a). Insurers must tell employers in writing when coverage might cost less in the assigned risk plan (412:30).
• Audits (412:35):
  • The final premium is based on actual exposure.
  • Audits are done within 120 days after expiration or cancellation.
  • An employer that won't cooperate may be charged three times the estimated premium. It has 10 days to get that waived by completing the audit.
• Deductibles (412:31). Insurers must offer a deductible under which the employer pays 100% of the first $500 of benefits.
• Schedule rating (412:34). Credits or debits for safety and return-to-work programs may be up to 25%, on premiums over $1,000.
• Paperwork:
  • Certificates must list the states covered and any excluded officers, or say none are excluded (412:37-a).
  • Applications must be signed by the applicant and the producer, if any. A binder of 30 days or less is excepted (402:82).
• Premium fraud (638:20, VI) can bar an employer from public works projects for 1 to 3 years, plus restitution to the carrier.
• Guaranty. The New Hampshire Insurance Guaranty Association pays covered workers' comp claims in full (404-H:8).

Common exam traps

• Coverage is required at one employee.
• Workers' comp is administered by the Department of Labor. The Insurance Department regulates the insurers.
• The waiting period is 3 days, paid back if disability lasts 14 days.
• TTD is 60% of the worker's wage, with a floor of 30% and a cap of 150% of the state average weekly wage.
• Notice is due within 2 years, and the claim within 3 years.
• Purposely failing to insure is a class B felony.