What insurance is required before hiring employees?

Required Business Insurance Before Hiring Employees in New Hampshire

Before hiring employees in New Hampshire, businesses must secure specific insurance coverage to comply with state operational requirements and protect both the business and its workforce.

Workers' Compensation Insurance

Workers' compensation insurance is mandatory for most employers in New Hampshire as soon as they hire employees. This insurance covers medical expenses and lost wages if an employee is injured or becomes ill due to job-related activities.

• Required for businesses with one or more employees.
• Must be obtained before the first employee starts work.
• Helps manage operational risk and ensures compliance with state reporting and recordkeeping.

Unemployment Insurance

New Hampshire employers are required to pay into the state's unemployment insurance program. While this is not an insurance policy you purchase, it involves registering with the New Hampshire Employment Security (NHES) and submitting quarterly payroll reports and contributions.

• Register with NHES after hiring employees.
• Maintain accurate payroll records for reporting.
• Ensure timely payment of unemployment taxes to avoid penalties.

Additional Insurance Considerations

While not legally required before hiring, businesses should consider the following to support operational stability:

• General liability insurance to protect against third-party claims.
• Employment practices liability insurance (EPLI) to cover risks related to employee management.
• Disability insurance as a voluntary benefit to attract and retain employees.

Next Steps for Employers

• Obtain workers' compensation insurance through a licensed carrier or the New Hampshire Workers' Compensation Pool.
• Register with New Hampshire Employment Security for unemployment tax purposes.
• Implement payroll and recordkeeping systems to manage insurance compliance efficiently.
• Consult with insurance brokers to tailor coverage based on your industry and workforce size.