Workers’ compensation is an insurance that employers carry to pay for injuries their workers sustain on the job. If you suffer an injury and your employer does not have coverage, you cannot make a workers’ compensation claim.

However, New Hampshire law states that every employer must carry workers’ compensation insurance.

Legal requirements to carry coverage

The law requires all employers who have employees to have workers’ compensation. It does not allow for exceptions for family members who are employees or non-profit businesses. The law is fairly strict in that any employer who has any other person working for them must have this insurance.

Exemptions to the rule

While the law does state all employers must carry workers’ compensation, there are some limited exceptions. Self-employed individuals or partners in a business do not have to have it. A limited liability with three or fewer employees also does not have to have coverage. However, if these entities have subcontractors, they may have to provide coverage.

Another exemption is independent contractors. They do not have to have coverage because they are not working for an employer. Still, it is important for companies to ensure their workers are actually independent contractors under the legal definition.

Not carrying workers’ compensation insurance when required by law is a violation that could get your employer into trouble. You should report the situation if you discover your employer does not have coverage as it is most likely a requirement and therefore a legal violation. If you suffer an injury, you would have to go through the court to seek compensation.