Overview of New Hampshire Workers Compensation
New Hampshire’s workers compensation law requires that every company that employs one or more full- or part-time employees cover those employees under a workers compensation policy.
Risk Management Can Reduce the Cost of Workers Compensation
The price an employer pays for workers compensation insurance is determined using historical data for job types and individual companies. Because of injury rates within an industry (for example, injury rates of construction workers, as compared to office workers), some very responsible companies with little or no history of worker injury may still have to pay higher-than-average rates. While industry factors cannot be changed, there are other things an employer can do to influence the cost of his/her workers compensation.
The workers compensation premium one pays is figured on an “experience modification factor” that considers the severity and frequency of claims. Sometimes the details of claims are inaccurately stated or are missing from the insurance record, which can skew the information used to determine a company’s insurance rate.
A risk management consultation with a M&P advisor may help you. Our advisors can review past workers comp claims to ensure the record is correct and that injury claims that had been closed in a prior period are no longer having a damaging effect.
Can a New Hampshire Company Insure Its Own Employees?
Individual employers and groups of “homogenous” employers (such as a group of contractors) can self-insure for workers compensation, but the state requires that the company guarantee the full sum of risk it is assuming. This can be done with a surety bond. Self-insureds must also purchase excess insurance coverage. Our firm can provide quotes for surety bonds and other forms of guarantees as well as excess insurance coverage.