What insurance is required when hiring workers?

Required Insurance When Hiring Employees in New Hampshire

When hiring employees in New Hampshire, businesses must secure specific insurance coverages to comply with state regulations and protect their operations.

Workers' Compensation Insurance

Workers' compensation insurance is mandatory for most employers in New Hampshire who have one or more employees. This insurance covers medical expenses and lost wages if an employee is injured or becomes ill due to work-related activities.

• Required for all employers with employees, including part-time workers.
• Coverage must be maintained continuously while employees are on payroll.
• Employers must post a notice about workers' compensation rights in the workplace.

Unemployment Insurance

Employers in New Hampshire are also required to pay into the state unemployment insurance program. While this is not an insurance policy the employer purchases directly, it is a mandatory payroll tax that funds benefits for eligible unemployed workers.

• Register with the New Hampshire Employment Security (NHES) to report wages and pay contributions.
• Maintain accurate payroll records to support unemployment claims and reporting.

Additional Insurance Considerations

While not legally required, businesses should consider other insurance types to manage risks associated with employees:

• General liability insurance to protect against third-party claims.
• Employment practices liability insurance (EPLI) to cover claims related to hiring, termination, or workplace discrimination.
• Disability insurance may be required for certain employers or employees under federal law.

Operational Tips

• Verify insurance coverage before onboarding new employees to ensure compliance.
• Use payroll and HR software to track insurance payments and reporting deadlines.
• Keep detailed records of insurance policies, claims, and employee notifications.
• Consult with a licensed insurance broker familiar with New Hampshire requirements to optimize coverage.